MaritimeNews ® 08-Dec-2015 17:48

South Korean shipbuilder STX Offshore & Shipbuilding Co. is likely to receive a financial aid from its creditors worth KRW 450 billion (USD 385 million) in exchange for a massive cut in workforce, Yonhap news agency reports.
The creditors, led by the state-run Korea Development Bank (KDB), are to meet this Wednesday when they should decide whether to save the shipbuilder from a liquidity shortage.
The potential lifeline would cost the labor union some 800 jobs, or 30 percent of the shipbuilder’s workforce by the end of 2016.
The company, once the world’s fourth biggest shipbuilder, has been under control of its creditors for two years now having compiled a debt of USD 3.5 billion amid a prolonged industry slump.
STX aims at abandoning its offshore and special ship business, which will turn the company, into a medium-sized enterprise focusing entirely on the construction of tankers.
World Maritime News Staff
Heads necessary to send messages to enable JavaScript

Similar topics

STX Shipbuilding’s Creditors Not On Board with Financial Aid Plan
STX Offshore & Shipbuilding Plans Jobs Cull to Stave Off Collapse
STX Shipbuilding Seeks Relief in Court Receivership
HHIC Seals Deal with Creditors on Business Normalization
DSME in Talks with Creditors as It Comes to Grips with Losses
Report: DSME Rolls Out Revised Self-Rescue Plan
HHI Hands In Self-Rescue Plan to Creditors
Report: DSME Workers Ready to Accept Wage Cuts, Propose Talks
KDB: No Bailouts for DSME in 2016
STX Shipbuilding in Talks to Cancel Vessel Orders
  • Reply

The time now is: Today 06:41

All times are GMT + 3 Hours