STX Pan Ocean, one of South Korea's largest shipping companies, has filed for receivership.
According to Bloomberg, the company slipped to its lowest trading level in Seoul since the company was first listed on the Korea Exchange in 2007. A court accepted the company's application to seek protection, which means investors "will have their shareholding written down and creditors will swap debt for equity as part of any restructuring plan".
The announcement of receivership came following main creditor Korea Development Bank (also STX Pan Ocean's second-largest shareholder) declining to purchase the company from the STX Group, continues the news agency.
Over the past 18 months, STX Group has been attempting to raise funds by selling stakes in subsidiaries, the most high profile of which involved the sale of STX OSV to state-owned Italian shipbuilder Fincantieri.
The Group has been seeking up to USD2.2 billion, concludes Bloomberg, ever since the global financial crisis saw a dramatic shipping overcapacity that slashed bulk rates and reduced new building orders.
Source: Bloomberg
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