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