STX Shipbuilding’s Creditors Not On Board with Financial Aid Plan

Certain creditors of the South Korean shipbuilder STX Offshore & Shipbuilding Co. voiced their disapproval of a financial aid package to the troubled shipbuilder worth KRW 450 billion (USD 385 million), Yonhap news agency reports.

As informed, Woori Bank and KEB Hana Bank, who hold 10 percent stake in the yard, do not want to back the bailout plan amid deteriorating condition in the shipbuilding industry.

However, their support is not expected to impact the realization of the financial aid as creditors, led by the state-run Korea Development Bank (KDB), are moving ahead with the activities to save the shipbuilder from a liquidity shortage.

The lifeline does come with a catch, as STX Offshore had to agree to cut its workforce in exchange for the aid. As a result, the deal is expected to 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.

World Maritime News Staff

Share this article

Follow World Maritime News

Posted on December 24, 2015 with tags .

In Depth>

Events>

<< Mar 2019 >>
MTWTFSS
25 26 27 28 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

LNG2019

LNG2019 features the largest number and highest level of LNG industry leaders.

read more >

Singapore Maritime Week (SMW) 2019

very year, SMW gathers the international maritime community for a week of flagship conferences…

read more >

FPSO Brazil Congress 2019

Charging ahead with 24 planned orders by 2022, Brazil has once again solidified its status as one of the world’s foremost oil and gas leaders…

read more >