Report: STX Offshore Gets a Second Chance

The financially troubled shipbuilder STX Offshore & Shipbuilding got a second chance to avoid court receivership as its main creditor said it would examine the company’s self-rescue plan.

Korea Development Bank (KDB) opted for the move after the shipbuilder’s labor union submitted an agreement on a voluntary retirement program and other reductions in work benefits, Korea Times said citing industry officials.

Earlier this week, STX Offshore’s creditors, led by the state-run KDB, informed that the shipbuilder would be placed under court receivership “in principle” after its union failed to accept the restructuring plan due to proposed workforce reductions. The shipbuilder was given a deadline, which expired at midnight Monday.

The creditors intended to issue refund guarantees for new ships and keep the company afloat, provided that STX Offshore and its labor union agree on the restructuring measures, which included a 75 percent decrease in workforce through voluntary retirement and outsourcing applications from production workers, as well as asking some employees to submit resignations.

The cash-strapped shipbuilder previously filed for court receivership in May 2016. In mid-2017, the Seoul Bankruptcy Court decided to finalize the shipbuilder’s receivership process as STX made considerable progress in its economic recovery and managed to adhere to the debt payment schedule proposed under its previous rescue plan.

World Maritime News Staff