Embattled South Korean tiremaker Kumho Tire will sign a memorandum of understanding(MOU) with its creditors on Monday on the firm's sale to a Chinese investor and plans to normalize operations.

Unionized workers of the cash-strapped tiremaker on Sunday voted to accept creditors' plan to sell the firm to China's Qingdao Doublestar to avoid court receivership.

Under the plans approved by the union on Sunday, Doublestar will invest 646-point-three billion won in Kumho Tire's new shares, which will allow the Chinese tiremaker to become the biggest shareholder, with a 45 percent stake. 

The Chinese truck and bus tiremaker will guarantee job security for existing union workers for three years after taking control of management.

To help revive the financially troubled tiremaker, the union agreed to return some of their bonuses for 2018 and 2019, and to improve productivity at its plants, while accepting a wage freeze and a reduction in some work benefits by 2019.