Troubled South Korean shipyard STX Offshore & Shipbuilding has admitted a slew of court cases are heaping pressure on the company’s restructuring plans.
The shipbuilder, which entered court receivership two months ago, said yesterday that it is facing 25 civil lawsuits lodged by those demanding a total of KRW102bn won ($92.7m) in back wages, investment losses and delayed contract payments.
“STX has been unable to meet its financial obligations as it fails to make money amid falling orders and other unfavorable business conditions. Even if plaintiffs win, we cannot make payments without court approval,” a spokesperson for the yard told local media.
On Tuesday, the shipbuilder revealed plans to sell off its French cruise shipbuilding subsidiary as well as axing another 700 staff.