Greater China

Ailing STX suffers double Dalian whammy

Dalian: The squeeze is being tightened on strguggling Korean conglomerate STX’s holdings in Dalian with two court rulings in China demanding STX pay around $257m. STX Offshore & Shipbuilding has been told to pay $200.6m in guarantees made to its STX Dalian yard. The case was brought by the Bank of Communications which demanded the Korean firm pay back interest and capital owed by STX Dalian. Meanwhile, STX Heavy Industries has been told to pay $56.5m to the Bank of Communications on behalf of subsidiary, the engine maker STX Dalian Heavy Industries.

An STX spokesperson told Korean newswire Yonhap that the company would seek to fight the rulings made at Chinese arbitration courts. 

As the STX conglomerate continues to reorient itself after suffering vast debts speculation mounts that it will offload its Dalian subsidiaries to Chinese interests.  [24/01/14]

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