Kumho Asiana Group Chairman Park Sam-koo desperate not to lose Kumho Tire that his father had founded to build Kumho Group to a Chinese rival is pleading to state creditors to let him retrieve Kumho Tire in the form of a consortium with partners.

Park who had surrendered management right and stake in Kumho Tire to creditors led by Korea Development Bank (KDB) in 2009 after the transportation-strong conglomerate ran into liquidity troubles amid the global financial crisis has the right of first refusal, or the priority to buy back the company for the same price as the preferred bidder should it be placed on sale.

The right is confined to Park and his eldest son Park Se-chang and prohibits them to get any financial assistance from group affiliates. Park must come up with at least 955 billion won ($832 million) from his own pocket to match the offering from Kumho Tire’s highest bidder Double Star Tyres.

According to Kumho Tire creditors on Sunday, Park sent a letter pleading them to allow him to form a consortium with a group’s unit and an outside entity to take over the tire maker - the same term as the Chinese bidder who had won the preferential title in a consortium.

If the creditors, or group of shareholders, turn down Park’s request, the tire company’s majority 42.1 percent plus management right would end up in the hands of Double Star Tyres that had been chosen as the preferred bidder in the auction held in January.

Park set up a special purpose company called Kumho Invest Incorporation through which he hopes to raise the fund to redeem Kumho Tire through a pool of investors. According to sources in the business circles, he has approached China’s chemical firm ChemChina.

Creditors of Kumho Tire on Monday will sign a stock transaction contract with Double Star Tyres for their combined holding at 955 billion won. Park would be asked by Thursday whether he will exercise his right and beat the price. If he is willing, he must present the fund within a month.

By Kim Jung-hwan and Chung Seok-woo

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