Court Okays STX Offshore Rehabilitation Plan
STX Offshore & Shipbuilding has got the green light to carry on operations. A Seoul court today approved its rehabilitation plan, saving the yard, once the world’s fourth largest, from liquidation, reports Yonhap.
STX Shipbuilding, once South Korea's No. 4 shipbuilder, has been placed under court receivership since June, amid a protracted slump in the shipbuilding industry.
The Seoul Central District Court approved its revival plan, ending the financially shaky shipyard’s five-month long court receivership.
The court said it is currently carrying out mergers and acquisitions (M&A) procedures for a smooth restructuring of the shipyard and is reviewing proposals from four enterprises that have been submitted as of last week. It is planning to receive acquisition proposals until Dec. 27.
“The court will put forth every effort possible to establish a foothold for STX Offshore & Shipbuilding Co. to normalize and return to the market by promptly and fairly executing the M&A procedures and help it contribute to the country and the regional economy,” the court said.
Despite over 4 trillion won (US$3.36 billion) in financial aid from its creditors, the shipbuilder logged an operating loss of 314 billion won last year following a loss of 1.5 trillion won the previous year.