STX ordered to compensate shareholders $4.2m

STX ordered to compensate shareholders $4.2m

Struggling South Korean shipyard STX Offshore & Shipbuilding has been told it must pay minority shareholders $4.2m in compensation to 290 minority shareholders for losses they suffered thanks to an accounting fraud at the yard. The plaintiffs had initially sought a figure about 40% higher than what the court decided on.

STX, when headed by now dethroned Kang Duk-soo, forged financial statements for around a decade.

In 2015, an appeals court convicted Kang of embezzlement and negligence of duty.

The yard has been going through an extensive restructuring in the past 18 months, saddled by massive debts and a dwindling orderbook.

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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