Creditor banks cut ties with ailing STX Offshore & Shipuilding

Creditor banks cut ties with ailing STX Offshore & Shipuilding

A number of creditor banks to South Korea’s STX Offshore & Shipbuilding have decided to stop supporting the yard, saying its troubles – and the shipbuilding industry’s as a whole – are not worth throwing more money at.

Shinhan Bank becomes the latest creditor to yank support, joining Woori Bank and KEB Hana Bank.

Nevertheless, state-backed banks are continuing to support the shipbuilder, which five years ago could claim to be the fourth largest in the world before it ran into difficulties.

Korea Development Bank (KDB), the Export-Import Bank of Korea and Nonghyup Bank have committed to support STX with further funding having approved its restructuring plan that sees huge redundancies, a wage freeze and a commitment to focus on less ship products.

STX has been under the control of creditors since 2013, and the creditors have provided over KRW4trn ($3.6bn) to the yard to date with more coming.

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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