Hong Kong Investors May Acquire STX Dalian

Asia Rural Development Foundation (Holdings) Ltd., a Hong Kong-based investment fund, has set out to acquire STX Dalian, a Dalian (Northeast China)-based shipyard owned by financially struggling STX Offshore & Shipbuilding.
According to investment banking sources on July 31, a consortium led by the foundation had offered 1.1 trillion won to STX on condition that it won't assume the debt. Already it had signed an agreement on June 4 to invest in the shipbuilding unit. STX will have to respond to the offer by August 8.
 In addition to Asia Rural Development Foundation, other Chinese investors including a Chinese state-run shipbuilding company and China Communications Construction Co. will participate in the consortium. A creditor bank official commented on the offer, "Given the huge debt incurred by STX Dalian, it is hard to believe the deal would go through. On the other hand, however, the top management of the companies is very close to high-ranking government officials, which makes the deal's success more likely."
According to a regulatory filing made by STX Offshore & Shipbuilding on May 31, its debt guarantees made to the three Dalian companies including STX Dalian Shipbuilding, Engine, and  Marine Engineering are in excess of 1,269 billion won.
Source: Korea IT Times