STX reveals debt deal

Cash-strapped STX Offshore & Shipbuilding has lined up a debt-for-equity swap worth KRW 1.89 trillion ($1.78bn).
STX: share sale coming

STX: share sale coming

The Korean yard company revealed the amount in a filing to the country’s stock exchange.

It added it would issue 756.5m new shares.

Media reports had put a likely debt swap at KRW 1.3 trillion.

Korea Development Bank (KDB), the yard’s main shareholder, will get 240m new shares as part of the issue.

Agricultural Bank will be awarded 167m and Export-Import Bank of Korea will gain 143m.

KDB said last week that more than 75% of other institutions owed money by STX had approved rescue measures including an injection of KRW 1.8 trillion in new liquidity.

This would bring pledged cash to a total of KRW 4.5 trillion.