Court Starts STX Shipbuildings Rehabilitation Process

STX Offshore and Shipbuilding Seoul Central District Court launched the corporate turnaround process at the South Korean shipbuilder STX Offshore & Shipbuilding Co. on August 1, after the company filed for court receivership in May, 2016. The cash-strapped shipbuilder, which opted for the move after its creditors decided to end their years-long financial aid to the yard, is scheduled to file its rehabilitation programs in October. The debt-restructuring receivership will be undertaken to prevent the company from entering insolvency, according to Yonhap New Agency. An accounting firm would be appointed to conduct due diligence on the shipbuilder and report the results by the end of September, Yonhap cited sources close to the matter. STX Offshore & Shipbuilding was taken over by its creditors, led by the Korea Development Bank, in 2013 and has received over USD 3.3 billion in assistance to remain afloat. Affected by persistent headwinds in the offshore oil and gas industry, the company is said to have accrued over KRW 6 trillion in debt. STX Shipbuilding is the latest South Korean yard to be claimed by the country’s troubled shipbuilding industry. The country’s Big Three shipbuilders, DSME, HHI and SHI, have already received approval for their self-rescue plans, which include major cost cuts. World Maritime News Staff