STX sale could open this week

Korean court prepares to begin combined disposal of Korean yard parent and French cruiseship builder.

A South Korean court could begin the disposal of STX Offshore & Shipbuilding this week.

The sale of the Korean company, together with its STX France unit, is part of its court receivership, for which it filed in May.

"The court is seeking to sell STX Offshore together with STX France as one bundle," Seoul central district court judge Choi Ung-Young told AFP.

A notice to that effect would be issued "this week", he added.

The court will then meet creditor banks on 11 November for approval of the sale and its overall restructuring plan.

STX has outlined a drastic series of measures, including asset sales, cost-cutting and a debt-to-equity swap, to make shipbuilding at its main Chinhae facility viable again.

The management has suggested a debt-for-equity swap, with creditors covering 92% of the company’s stock. The remaining 8% will be kept as cash on the condition that it will be kept away from creditors until 2022 at the earliest.

Under the plan, the workforce would be reduced by 30% and staff would suffer a 20% cut in salary.