Korea's ailing tire manufacturer, Kumho Tire, has avoided being placed under court receivership after its labor union backed a plan to sell the firm to Chinese truck and bus tiremaker, Doublestar. <br />Under the plan,... the Chinese company has vowed to invest some six-hundred million U.S. dollars into Kumho Tire.<br />Kim Hyo-sun tells us more. <br /> Cash-strapped Kumho Tire has avoided bankruptcy as its labor union on Sunday voted in favor of selling the company to its Chinese rival, Doublestar.<br />Sixty percent of its union okayed the sale plan,... under which,... the Chinese tiremaker buys a 45 percent stake in Kumho Tire for approximately 600 million U.S. dollars through a third-party capital increase.<br /> Doublestar has also vowed to secure jobs for Kumho's five-thousand employees for three years after acquisition. <br />To get the company back on track,... Kumho's union members also agreed on a wage freeze until 2019 and returning parts of their work benefits. <br />After Kumho's creditors sign a memorandum of understanding with the tire manufacturer on Monday,... they will proceed to signing a sales contract with Doublestar before the end of June,... according to its main creditor, the Korea Development Bank. <br /> Apart from the sales deal,... Kumho's creditors will also inject around 190 million dollars in additional funds to cover the firm's debts of over two-point-two billion dollars.<br />Kim Hyo-sun, Arirang News. <br />
