S Korea court plans pack­age sale of STX

The Myanmar Times - - Business -

A SOUTH Korean court han­dling the bank­ruptcy case of STX Off­shore and Ship­build­ing Co, said yes­ter­day it could an­nounce the bun­dled sale of the com­pany with its prof­itable French ship­yard unit later this week.

STX France, which spe­cialises in build­ing cruise ships, is the only prof­itable unit of STX Off­shore, which filed for re­ceiver­ship in May.

Originally it was as­sumed that the French unit would be sold off separately as part of a gen­eral re­struc­tur­ing plan, but the bank­ruptcy court sig­nalled a pref­er­ence for sell­ing the two com­pa­nies as a pack­age.

“The court is seek­ing to sell STX Off­shore to­gether with STX France as one bun­dle,” said Choi Ung-Young, a judge with the Seoul Cen­tral District In­sol­vency Court.

A court no­tice to that ef­fect would be is­sued “this week”, Mr Choi said.

The court will then call in STX Off­shore stake­hold­ers and cred­i­tor banks on Novem­ber 11 to ap­prove the sale pro­posal.

Once South Korea’s num­ber four ship­builder, STX Off­shore has strug­gled since the global fi­nan­cial cri­sis with slump­ing de­mand and com­pe­ti­tion from low-cost Chi­nese ri­vals.

Cred­i­tor banks have stumped up more than four tril­lion won (US$3.5 bil­lion) to bail the com­pany out, but its to­tal debts stood at 7.3 tril­lion won as of June.

In 2008, STX bought a 66.6 per­cent stake in a huge naval ship­yard in the western French port of Saint-Nazaire, later named STX France.

France holds a 33.3pc share and is ex­tremely con­cerned about the fu­ture of the ship­yard, which is a big lo­cal em­ployer with a healthy or­der book for large cruise lin­ers. –

Photo: AFP

Con­struc­tion is un­der way of X32 liner in the STX (France) ship­yard in Saint-Nazaire.

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