Doublestar Tyre chief arrived in Korea to personally persuade the union of Korea’s Kumho Tire Co. resisting a recapitalization plan through which management control will be handed over to the Chinese rival while the clock is ticking on the creditors-set Friday deadline.

“We will respect all the labor terms of the existing management and union. Kumho Tire will operate independently even after the acquisition. I assure you, we are seeking a partner and are not intending to own and steal technology,” said Chai Yongsen, chairman of the Qingdaq-based tire maker during a press conference held on Thursday at the headquarters of the Korea Development Bank (KDB).

“If the union accepts our proposals, we will immediately provide promised cash,” he said but adding the company cannot wait forever.

Shares of Kumho Tire were uplifted by his visit with investors betting on a breakthrough in the fate of tire maker.

Shares of Kumho Tire closed Thursday up 9.34 percent at 5,150 won.

KDB and creditors have given until Friday to the union to accept their reorganization plan that includes wage cut and streamlining and recapitalization scheme that would make Doublestar the leading stakeholder. Otherwise they will immediately end the moratorium on debt obligation of 1.3 trillion won ($1.2 billion) to send the company to the bankruptcy court.

This is the second time Doublestar has emerged as the candidate to take over the country’s second industry leader with global networks.

Doublestar won the exclusive right to buy 42.1 percent stake from KDB-led creditors at 955 billion won in May last year, but the deal was called off in September after the Chinese company pushed down the offer to 800 billion won citing deteriorated income statement of Kumho Tire.

In the latest scheme, Doublestar will be awarded 45 percent stake through new equity issues at 646.3 billion won while creditors’ become reduced to 23.1 percent from 42.1 percent.

The union claims bankruptcy would be a better option, but left grounds for a deal while Doublestar’s chief is in Korea by demanding 10-year job guarantee instead of three year agreed by Doublestar in the new deal. Non-unionized workers released a statement on Wednesday that they would go along with the sale plan.

By Kang Young-woon and Choi Mira

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