Creditors of Kumho Tire Co. in a dramatic about-turn from the plan of selling the country’s major tire maker to its China rival will study the option of granting another stronger bidder Park Sam-koo, Kumho Asiana Group chairman and former owner of the tire company that his father founded, the right to buy back the company with outside help.

Kumho Tire’s creditors led by state-run Korea Development Bank (KDB) earlier this month signed an agreement with China-based Doublestar Tyre Co. to sell majority stake plus management right in the Korean tire maker for 955 billion won ($832. 5 million).

KDB in a board meeting Tuesday decided to review the outline if Park hands in the financing plan in a consortium before the April 12 deadline.

Park who has been intent on buying back the company he surrendered amid group-wide liquidity crisis in 2010 has the right to redeem the management control if he is able to match the price terms by the preferred bidder. But the right of priority is restricted to Park and his eldest son Park Se-chang.

Park argues he can come up with 1 trillion won if he can pull in other investors, arguing for fairness in the terms as Doublestar has also come up with the fund in a consortium with others. He needs a backing of 75 percent of the creditors.

Political developments have been working in favor of Park. The agenda came at a time when the country is electing a president on May 9, seven months ahead of the schedule due to the removal of impeached President Park Geun-hye. Part suppliers and citizens of Jeolla Province where Kumho are based in are protesting strongly to the sale to a Chinese maker raising concerns for jobs and dent on the regional economy. Doublestar last week issued a statement reiterating the promise to retain jobs and hire more. Moon Jae-in, the leading presidential candidate from Democratic Party whose stronghold is the Jeolla region, also raised questions about the deal.

Still, it won’t be easy for the creditor group to walk out the deal with Doublestar as it could face an international lawsuit.

“What matters to creditors is their stake in Kumho Tire, not political conditions,” said one official from the creditor group.

By Kim Jung-hwan

[ⓒ Pulse by Maeil Business News Korea & mk.co.kr, All rights reserved]