Creditors oppose financial aid for STX Offshore & Shipbuilding

Some creditors of financially troubled STX Offshore & Shipbuilding are opposing financial aid for the shipyard citing the gloomy outlook of the shipbuilding industry, Korea’s Yonhap News has reported.

Creditors of STX Offshore, led by the state-run Korea Development Bank (KDB), decided to provide 450bn won ($384m) in financial aid to the shipyard last week in return for a thorough restructuring.

However, Woori Bank and KEB Hana Bank notified other creditors that they would not join the plan citing the shipbuilding industry’s worsening business conditions.

STX Offshore is expected to receive the financial assistance as planned without the two lenders’ help. In return for the additional financial aid, the business portfolio of STX Offshore will be reorganized to focus on tankers and small-sized LNG carriers, according the report.

STX Shipbuilding has been under control of creditors since 2013, and the creditors have provided over 4 trillion won ($3.6bn) to the shipyard.

Jason Jiang

Jason is one of the most prolific writers on the diverse China shipping & logistics industry and his access to the major maritime players with business in China has proved an invaluable source of exclusives. Having been working at Asia Shipping Media since inception, Jason is the chief correspondent of Splash and associate editor of Maritime CEO magazine. Previously he had written for a host of titles including Supply Chain Asia, Cargo Facts and Air Cargo Week.
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