By LOU WILIN
Cooper Tire & Rubber Co.’s partner in a Chinese factory will start entering financial and operational information into company computers, Cooper Tire reported Tuesday.
The Cooper Chengshan Tire joint venture plant has been withholding such information for months to sabotage the proposed sale of Cooper Tire to Apollo Tyres of India. The leaders of the China plant also banned Cooper Tire leaders from their buildings.
By withholding information about the large plant, Chinese leaders prevented Cooper from releasing information about its performance in the third quarter of 2013. Without such information, lenders would not release financing that would enable Apollo to buy Cooper. A lack of a labor pact between Apollo and unionized Cooper Tire workers in the United States also prevented the sale from closing.
With the Apollo deal apparently dead, the China plant seems to be returning to normal. But Cooper is still uncertain when it will be able to report its financial information to investors and analysts.
“Cooper will monitor the data entry to assure that it is taking place properly and that it will continue without interruption,” Cooper Tire reported. “While this represents a positive step toward Cooper restoring regular financial reporting, the company continues to work with the labor union and joint venture partner to resolve open issues on a long-term basis. Therefore, at this time, it is premature for Cooper to determine when it will resume regular financial reporting.”
Wilin: 419-427-8413 Send an E-mail to Lou Wilin
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