Creditors of Kumho Tire Co. will hold a meeting this week to discuss the fate of the troubled tiremaker as its management and labor union failed to agree on a turnaround plan, the state-run creditor bank said Tuesday.

Korea Development Bank said it will hold the meeting on Wednesday.

To help revive Kumho Tire, creditors have agreed to extend 1.3 trillion won ($1.21 billion) worth of debt. In return, they asked Kumho Tire's management and labor union to accept concessions and agree on a plan to save the company by Monday.

Creditors extended the Monday deadline by one day, but Kumho Tire has not submitted a letter of agreement on the self-help plan.

Kumho Tire's labor union pressed creditors to officially withdraw their plan to sell the tiremaker to China's Qingdao Doublestar.

"We sternly reject discussions with management for the self-rescue plan for normalized management unless there is an official position on selling the tiremaker to a foreign buyer," the union said.

The KDB warned that the union will be held accountable for any consequences caused by Kumho Tire's failure to submit a letter of agreement on the self-help plan.

The fate of Kumho Tire was thrown into uncertainty after a deal to sell a majority stake in the tiremaker to China's Qingdao Doublestar collapsed last September. (Yonhap)