Cooper Tire, Apollo still wrangling over failed deal

Cooper Tire & Rubber Co. and Apollo Tyres, of India, are still wrangling in a Delaware court over who was to blame for the failed sale of Cooper to Apollo last year.
Cooper has claimed an agreement the two companies made entitles it to $112.5 million from Apollo for not completing the deal, Bloomberg reports.
Apollo argues that because Cooper Tire was not “in a position to close the deal, Cooper can’t get damages,” said John Hardiman, an Apollo attorney.
Apollo attorneys have told Delaware Chancery Judge Sam Glasscock that it was Cooper’s inability to control its Chinese partner’s operations and financial reporting that prevented the sale, Bloomberg reports.
Apollo has been urging Glasscock to rule on Cooper’s failures, so Apollo can ask an appellate court to clear Apollo of responsibility for the deal’s unraveling.
Apollo attorneys have said the deal failed because Cooper’s partner in a Chinese plant, Chengshan Group, opposed the deal. The Chinese plant stopped producing Cooper-brand tires and withheld the plant’s financial information from Cooper Tire leaders.
Without the financial information, Cooper Tire could not release information about its performance in the third quarter of 2013. That, in turn, prevented lenders from releasing financing that Apollo needed to buy Cooper, Apollo attorneys have argued.



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