Court Gives Nod to STX Shipbuilding’s Receivership

Image Courtesy: STX Shipbuilding

South Korean shipbuilding company STX Offshore & Shipbuilding Co. has received approval to go into court receivership, the Korea Times reports citing a local court ruling from today.

The cash-strapped shipbuilder filed for court receivership with the Seoul Central District Court, on Friday, May 27th.

The 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.

Now the court gave the shipbuilder a three-month deadline to submit a self-rescue plan.

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.

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

Share this article

Follow World Maritime News

In Depth>

Events>

<< Sep 2017 >>
MTWTFSS
28 29 30 31 1 2 3
4 5 6 7 8 9 10
11 12 13 14 15 16 17
18 19 20 21 22 23 24
25 26 27 28 29 30 1

BWMTech North America

Are you operating to international standards? Clarify regulations. Plan BWMS integration…

read more >

NEVA 2017

The diversity of the Conference Programme is well-rounded by a broad spectrum of topics including Commercial Shipbuilding, Offshore and Marine…

read more >

LIQUEFACTION OF BULK CARGOES SEMINAR

GET TO GRIPS WITH:
– Mechanisms behind liquefaction
– Guidelines and regulations for bulk cargoes prone to liquefaction…

read more >

Seatrade Offshore Marine & Workboats Middle East

The largest event for offshore marine and workboat sectors in the region, Seatrade Offshore Marine & Workboats Middle East will, once again, serve as a meeting point for international industry professionals to come together and do business. Our 2017 show promises a wealth of networking opportunities, high-level discussions in our conferences on important industry trends, […]

read more >