SEOUL, KOREA - It is estimated that the amount required for this year alone to restore STX Group to health by the creditors would be in excess of 800 billion won.

According to the creditors on May 5, the volume of corporate bonds owed by STX Group companies coming due until this year's end is 980 billion won, including 480 billion won for STX Corp., 300 billion won for STX Offshore & Shipbuilding, and 200 billion won for STX Pan Ocean. Of this, the 200 billion won for STX Offshore has already been promised by the creditors.

 

A creditor bank official said, "If we are to revive all five STX companies including STX Corp., STX Offshore, STX Heavy Industries, STX Engine, and ForceTec, we will need as much as 800 billion won including working capital." The question, however, is whether all creditors would agree to such a plan.

 

An official of the Korea Development Bank, the principal creditor, said, "The 200-billion-won bonds for STX Corp. will come due on May 14. To redeem it, there is no other way around except requiring pledges and and an agreement to inject more cash from all the creditors."

 

A financial regulator said, "It is a matter to be decided by the creditor group who will take into account the economy-wide repercussions if the whole group collapses," hinting that the agreement would be in sight.