Creditors to bail out STX Group?


Creditors of South Korea's STX Group will reportedly inject up to 800 billion won (USD730 million) in order to save the flailing company, a source told the Korean news agency Yonhap.

On Friday, STX Group's holding company, STX Corp., and two affiliates requested main creditor Korea Development Bank supply liquidity in return for its voluntary debt-relief and restructuring efforts.

Korea Development Bank, one of the Group's main creditors, was requested by the Group's holding company, STX Corp, and two affiliates to supply liquidity for the company's proposed restructuring.

According to Yonhap, the company's 11 subsidiaries have been struggling from liquidity shortages from mounting debt due to the Global Financial Crisis-induced downturn in shipbuilding and shipping.

The group is also reportedly looking to sell Chinese subsidiary STX Dalian Shipbuilding, as well as its European and Scandinavian assets.

{WISroYQ symbol='011810.KRX'}

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