South Korean state-run Korean Development Bank(KDB), a major creditor of financially troubled STX Offshore & Shipbuilding, announced that it has accepted the shipyard’s self-rescue plan and decided to withdraw a plan to place the shipyard under court receivership.
Earlier this week, KDB said it will put STX under court receivership after the shipyard failed to reach an agreement with the union on conditions for the restructuring.
The union has reached a last-minute agreement with the shipyard to cut labor costs by 75 percent through unpaid leave, salary cuts and welfare benefit reductions on the condition that management does not lay off any workers.
The KDB plans to provide financial assistance to the cash-strapped shipbuilder by issuing refund guarantees.
The share price of STX Offshore & Shipbuilding jumped 9.04% yesterday after KDB announced the decision.