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>

<< Sep 2019 >>
MTWTFSS
26 27 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 2 3 4 5 6

Defence Safety Conference 2019

The Defence Safety Conference returns to London this October as the only event solely dedicated to enhancing safety across all aspects of defence.

read more >

Shipping Transformation Asia

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

read more >

3rd MarSat Workshop

The MARSAT project wants to operationalise and standardise EO products and aims to develop…

read more >

Global Sustainable Shipping Forum 2019

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

read more >