One of South Korea’s largest shipyards is likely to enter court receivership, as early as today, its creditors have decided, according to local media.
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.
Creditors have pumped in more than $3bn into the yard in the past two years, but it is still losing money.