While other Korean yards have gone to the wall this year, STX Offshore & Shipbuilding looks set for a reprieve.
Once the world’s fourth largest shipbuilder STX has been brought low largely by the antics of Kang Duk-soo, the founder of the STX Group who was jailed for corruption.
Creditors have now decided, local media report, that the yard is worth keeping rather than liquidating its assets. Creditors have been pouring over STX’s rehabilitation plans and are likely to give the yard a stay of execution next week.
Creditors believe the value of keeping STX running is higher than its liquidation value. STX’s rehabilitation plan includes axing 30% of its staff, reducing all wages by 10% and focusing on serial construction of product tankers.
Other parts of STX’s shipbuilding empire, such as its huge yard in Dalian, China, are under auction.