According to reports in The Korea Bizwire and The Korean Times, Qingdao Doublestar Co. has demanded that creditors cut its price by 16.2%, citing Kumho’s poor performance in the first half of 2017. Under the terms of the agreement with creditors, Qingdao Doublestar has the right to cancel the deal if Kumho Tire’s operating profit falls more than 15 percent on year as of Sept. 23, 2017 when the contract ends.

In the first six months of this year, Kumho Tire suffered an operating loss of 50.7 billion won (approx. $44.5 million USD), compared with a profit of 55.8 billion won (approx. $49 million USD) for the same period last year.

It remains unclear whether the creditors will accept the demand or not, according to the official.

Once notified, Park will have to let creditors know within 30 days whether he will pay a higher price or give up his right.