A South Korean court approved a filing by STX Offshore & Shipbuilding yesterday to be put under a court-led restructuring scheme, allowing the yard to stave off liquidation.
In May, STX Shipbuilding filed for receivership, suffering from huge losses. It now has until September 9 to issue a self-rescue plan.
The shipbuilder said it had debts of $600m. Its orderbook stretches through to mid-2017. Creditors have pumped more than $3bn into the yard over the past three years.
STX Offshore & Shipbuilding has been under creditor-led restructuring since April 2013. It was formerly part of STX Group, which went bankrupt causing a huge sell off of subsidiaries, including shipping line Pan Ocean, and most recently STX Dalian, the group’s huge Chinese yard.
STX Offshore & Shipbuilding was known as Ssangyong Heavy Industries before it was bought out by STX founder, Kang Duk-soo. Kang was sentenced for six years in jail in 2014 for fraud, a ruling that was overturned the following year.
