KDB considers fresh financial aid to STX Offshore & Shipbuilding under court receivership

State-owned Korea Development Bank (KDB) is considering to provide fresh financial aid worth 60 billion won ($53.7 million) to STX Offshore & Shipbuilding Co., which is under court receivership, in a bid to advance the ongoing restructuring process.

The latest support follows a precedent of June 2013, when Pan Ocean (formerly STX Pan Ocean) received fresh financial help from creditors under Creditor`s Track, a combination between creditors’ voluntary agreement and court receivership. It is to get rid of debt through court receivership before new funds are provided by creditors. Helped by the track, Pan Ocean’s business stabilized with its debt written off and was able to find a new owner in 2015.

According to sources on Tuesday, KDB has decided to offer 60 billion won in the so-called debtor-in-possession financing for the struggling shipbuilder and is in final talks with the court over when to provide the fund for what purposes in detail.

It remains uncertain whether STX Offshore & Shipbuilding will be successfully normalized or complete building promised ships for its customers before entering into liquidation. KDB is said to be believe that it would be a better option for creditors that the shipbuilder continues building ships and receives the balance from ship owners.
Source: Pulse