Kumho: Business as usual in the U.S.
South Korea-based Kumho Tire Co. was placed in what it calls a "debt work-out program" on Dec. 30, 2009, in response to financial problems faced by its parent company, Kumho Asiana Group (see "Financial woes burden Kumho Tire Co.").
In an official statement, Kumho Tire U.S.A. Inc., a subsidiary of Kumho Tire Co., said it is not subject to the work-out program. Here is the release in its entirety.
"Kumho Tire Co., headquartered in Seoul, Korea, has announced the company has entered into a 'work-out' procedure with creditors. The work-out is a unique procedure with creditors that does not involve the court system, whereby the company and creditors work together to address short-term financial difficulties.
"The work-out procedure is permitted to companies that are presumed to have a high possibility of business normalization but have suffered temporary difficulties in repaying loans to financial institutions. Many leading companies in Korea have previously experienced 'work-out.'
"Kumho Tires’ overseas entities are not subject to the work-out. Kumho Tire U.S.A. operations will continue as usual during the work-out period."