Cooper Tire unable to file quarterly earnings report
In an SEC filing Tuesday, Cooper Tire & Rubber said it can’t file its quarterly earnings report.
As has been reported extensively, the joint-venture plant in China that Cooper runs with Chengshan Group has been a thorn in its side since the June announcement of its $2.5 billion merger with Apollo Tyre. That plant, Cooper Chengshan (Shandong) Tire Co., or CCT, went on strike. The 5,000 Chinese workers and their Chinese parent company said it would be a clash of cultures, and that too much debt would be taken on.
Here’s what Cooper said in its filing:
…. On August 17, 2013, those employees returned to work on a limited basis to manufacture only non-Cooper branded products, but have taken other disruptive actions, including denying access to certain representatives of the company and withholding certain business and financial information. As of November 12, 2013, the Company has not been able to obtain this business and financial information from the Joint Venture in a sufficient manner to complete the Form 10-Q for the quarter ended September 30, 2013 (the “ Form 10-Q ”). The Company is currently evaluating its options for resolving this matter. Until it obtains satisfactory information from the Joint Venture, the Company will not be able to file the Form 10-Q. The Company expects to file the Form 10-Q as soon as practicable after the information is obtained.
Meanwhile, Cooper and Apollo have been battling out in Delaware Chancery Court, with Cooper asking the court to force the merger. Cooper says Apollo is dragging its feet; Apollo says it hasn’t been provided the information it needs to secure financing. And not having a quarterly earnings report doesn’t help. And the judge said over the weekend that, indeed, Cooper hasn’t met its obligations for the merger (click here for previous coverage.)