STX Heavy Industries and STX Corporation are likely to follow in the footsteps of STX Offshore & Shipbuilding, which filed for court receivership after its creditors discontinued providing a lifeline after 3 years of financial assistance failed to keep the country’s fourth-largest shipbuilder afloat.
Financial industry insiders said on June 6 that creditors are considering having STX affiliates file for court receivership as a follow-up to putting STX Offshore & Shipbuilding under court receivership.
Cross-holdings between STX Offshore & Shipbuilding and its affiliates, such as STX Heavy Industries, STX Engine and STX Corporation, were severed after capital reduction and debt-for-equity swaps were completed as part of efforts to normalize the business operations of STX Offshore & Shipbuilding.
Besides, 43 percent of STX Heavy Industries’ sales came from STX Offshore & Shipbuilding while STX Corporation has been acting as a surety for STX Offshore & Shipbuilding. Hence the two will inevitably take a knock from the shipbuilder being under court protection.
A creditor said: “We are considering various plans, one of which is sending STX Heavy Industries and STX Corporation filing for court receivership.”
