Greater China

STX Dalian to apply for court receivership

Dalian: STX Dalian Shipbuilding, the financially troubled subsidiary of Korea's STX Offshore & Shipbuilding, will soon file for court receivership with a Chinese court. An official of Korea Development Bank, the principal creditor bank of STX Group, said, "Court receivership is the only way to keep STX Dalian alive. We are reviewing options to apply for it," Korean local media reported.

"Usually the Korean court tends to approve the application. But it remains to be seen how the Chinese court does because there are many differences in legal practices and requirements," the official added. If the Chinese court rejects the application, STX Dalian may have to file for bankruptcy.

A source who is close to STX Dalian told SinoShip News that earlier plans by a Hong Kong consortium to take over STX Dalian appear to have fallen through on account of STX Dalian’s huge debts. [21/04/14]

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