Court cases rack up against STX Offshore & Shipbuilding

Court cases rack up against STX Offshore & Shipbuilding

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.

Sam Chambers

Starting out with the Informa Group in 2000 in Hong Kong, Sam Chambers became editor of Maritime Asia magazine as well as East Asia Editor for the world’s oldest newspaper, Lloyd’s List. In 2005 he pursued a freelance career and wrote for a variety of titles including taking on the role of Asia Editor at Seatrade magazine and China correspondent for Supply Chain Asia. His work has also appeared in The Economist, The New York Times, The Sunday Times and The International Herald Tribune.

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