Creditors of Kumho Tire Co. have tentatively agreed to accept original proposals by the tiremaker's parent group in a brand dispute with the Chinese buyer, the main creditor said Wednesday.

The tentative agreement, which came after a meeting of the creditors earlier in the day, appears to pave the way for the creditors to complete the monthslong stalled sale of Kumho Tire to China's Qingdao Doublestar Co.

Qingdao Doublestar signed a 955 billion won ($852 million) deal in March to acquire a 42 percent stake in Kumho Tire, but the process of acquisition hit a snag over how much the Chinese company should pay for the use of the Kumho brand name.

Under the initial proposals by Kumho Tire's parent group, Kumho Asiana Group, Qingdao Doublestar is required to pay 0.5 percent of its sales as a brand usage fee to Kumho Asiana Group for 20 years.

Qingdao Doublestar has reportedly suggested that it would pay 0.2 percent for five years.

While accepting the original proposals by Kumho Asiana, the creditors agreed to give a financial incentive to the Chinese company for the brand usage fee.

Given that Kumho Tire has annual sales of about 3 trillion won, the difference of 0.3 percentage point was estimated to be some 9 billion won, according to creditor bank officials.

Local creditors, which hold 2.2 trillion won in Kumho Tire bonds, could offer the Chinese company an extension on the maturity of their bonds.

State-run Korea Development Bank, the main creditor, plans to make a final agreement on whether or not to accept the original proposals by Kumho Asiana by Friday. (Yonhap)