STX Offshore & Shipbuilding Vies for USD 385m Lifeline

South Korean shipbuilder STX Offshore & Shipbuilding Co. is likely to receive a financial aid from its creditors worth KRW 450 billion (USD 385 million) in exchange for a massive cut in workforce, Yonhap news agency reports.

The creditors, led by the state-run Korea Development Bank (KDB), are to meet this Wednesday when they should decide whether to save the shipbuilder from a liquidity shortage.

The potential lifeline would cost the labor union some 800 jobs, or 30 percent of the shipbuilder’s workforce by the end of 2016.

The company, once the world’s fourth biggest shipbuilder, has been under control of its creditors for two years now having compiled a debt of USD 3.5 billion amid a prolonged industry slump.

STX aims at abandoning its offshore and special ship business, which will turn the company, into a medium-sized enterprise focusing entirely on the construction of tankers.

World Maritime News Staff

Share this article

Follow World Maritime News

Posted on December 8, 2015 with tags .

In Depth>

Events>

<< Jul 2019 >>
MTWTFSS
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 31 1 2 3 4

World Gas Series: Morocco Summit

Bringing together key players in the gas value chain in Morocco, the World Gas Series:

read more >

GreenTech in Shipping USA Forum 2019

GreenTech in Shipping USA Forum is an event for Maritime leaders who want to unlock successful business formula of the industry!

read more >

Shipping Transformation Asia

Shipping Transformation Asia will provide a platform for future-focused discussion in the shipping,…

read more >

Global Sustainable Shipping Forum 2019

The event will provide valuable insights from conference sessions, great networking opportunities and will offer…

read more >