South Korean cash-strapped shipbuilder STX Offshore & Shipbuilding Co. has filed for court receivership with the Seoul Central District Court, Yonhap news agency informs.
The Friday filing came as creditors decided to end their years-long financial aid to the yard, especially since the company lacks sufficient funds to meet its financial obligations due at the end of May.
It is now up to the court to decide whether STX Shipbuilding should be liquidated or given a chance for survival through rigorous restructuring, court officials are quoted by Yonhap as saying.
The shipbuilder 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.
The company is said to have accrued over KRW 6 trillion in debt having been unable to resist the headwinds of the offshore oil and gas industry downturn.
World Maritime News Staff