STX Offshore and Shipbuilding creditors add $1.6 billion moreSTX Offshore and Shipbuilding will receive an additional 1.8 trillion won ($1.6 billion) from creditors to solve its liquidity crisis.
According to Korea Development Bank, the main creditor of the shipbuilder, Woori Bank, Korea Eximbank and other creditors agreed to its normalization plan. Creditors had already approved 2.7 trillion won in support.
They will also likely have to provide a 1.3 trillion won debt-to-equity swap.
Despite the support, STX Offshore and Shipbuilding will probably be delisted from the stock market because of capital erosion.
As of the third quarter last year, the company had 1.4 trillion won of capital erosion. It has until the end of next month to erase the erosion and avoid delisting.
with the Korea JoongAng Daily
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