Lawsuits Pile Up against Ailing STX Shipbuilding
- Business & Finance
South Korea’s financially troubled shipbuilder STX Offshore & Shipbuilding is facing some 25 civil lawsuits amounting to a total of KRW 102 billion (USD 91.5 million), making it difficult for the company to normalize its operations, according to Korea Times.
The lawsuits were filed by former employees, investors and business partners due to investment losses and delayed contract payments.
The announcement comes only days after the Seoul Central District Court launched the corporate turnaround process at the shipbuilder, in an effort to prevent the company from entering insolvency.
An accounting firm would now conduct due diligence on the shipbuilder and report the results by the end of September.
The company is scheduled to file its rehabilitation programs in October.
In May, STX Offshore & Shipbuilding Co. filed for court receivership after its creditors decided to end their years-long financial aid to the yard, during which the company received over USD 3.3 billion in assistance to remain afloat.
World Maritime News Staff