AsiaShipyards

STX yard avoids liquidation

A South Korean court approved a filing by STX Offshore & Shipbuilding yesterday to be put under a court-led restructuring scheme, allowing the yard to stave off liquidation.

In May, STX Shipbuilding filed for receivership, suffering from huge losses. It now has until September 9 to issue a self-rescue plan.

The shipbuilder said it had debts of $600m. Its orderbook stretches through to mid-2017. Creditors have pumped more than $3bn into the yard over the past three years.

STX Offshore & Shipbuilding has been under creditor-led restructuring since April 2013. It was formerly part of STX Group, which went bankrupt causing a huge sell off of subsidiaries, including shipping line Pan Ocean, and most recently STX Dalian, the group’s huge Chinese yard.

STX Offshore & Shipbuilding was known as Ssangyong Heavy Industries before it was bought out by STX founder, Kang Duk-soo. Kang was sentenced for six years in jail in 2014 for fraud, a ruling that was overturned the following year.

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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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