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Court mulls 'package sale' of STX units: source

All Headlines 21:35 October 03, 2016

SEOUL, Oct. 3 (Yonhap) -- A South Korean court may push for the "package sale" of STX Offshore & Shipbuilding, once the nation's number four shipbuilder, and its two affiliates, an informed source said Monday.

STX filed for court receivership in May, succumbing to mounting debts attributable to mismanagement and an industry-wide slump.

The Seoul Central District Court is waiting for the stakeholders of STX to decide on a revival plan, leaving the possibility of the simultaneous sale of the shipyard and its two troubled affiliates _ Goseong Offshore & Shipbuilding and STX France, according to the source.

Goseong, which specializes in building oil and container tankers, is under a separate court-led revival program. STX has also sought to sell off STX France, a cruise ship-producing subsidiary based in France.

A foreign company, known to be operating a hotel chain, has expressed an intent to buy the three STX firms at once, added the source.

This undated file photo shows a shipyard of STX Offshore & Shipbuilding. (Yonhap)

The court, however, said no decision has been made yet.

"A sale plan can proceed only after a revival plan (for STX Offshore & Shipbuilding) is approved," a court official said. "It's premature to predict a specific sale method, given the previous cases of many companies showing interest in a purchase (of firms under court receivership) but not participating in formal bidding."
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