Cash-strapped STX division to get $2.6 bn from creditors
Creditors of ailing STX Offshore & Shipbuilding Co. on Tuesday drew up the final rescue plan to salvage the firm from a cash crunch, which will inject 3 trillion won (US$2.67 billion) into the company until the end of 2014, Yonhap news agency reports.
Main creditor, state-run Korea Development Bank (KDB) plans to inject fresh liquidity of 1.2 trillion won into the company this year, with the remaining 650 billion won to be provided in 2014. The KDB's normalization plan also includes a debt-equity swap worth 700 billion won.
The STX Group’s three divisions - STX Offshore & Shipbuilding, STX Heavy Industries and STX Engine are facing liquidity shortages and mounting debt due to the downturn in the shipbuilding and shipping sectors.
