Korean Shipbuilder Could Be Liquidated

May 30, 2016

 South Korea's STX Offshore & Shipbuilding Co. has filed for receivership, following massive losses that have mounted up over the past two years, says a report in the WSJ.

  
According to multiple sources from the shipbuilding industry, creditors and STX Offshore & Shipbuilding have decided to put Goseong Offshore & Shipbuilding under court management early next month and have begun taking necessary steps. 
 
The decision has been made after judging that it would be difficult for the small shipbuilder to sustain after its parent company goes under although its order backlog is sufficient to maintain operations until the end of next year.
  
A Korea Development Bank spokesman said the firm's creditors will decide on how to proceed with the court receivership process by the end of the month, as the company lacks sufficient funds to meet its financial obligations at end-May.
 
South Korean shipbuilders  - Daewoo Shipbuilding & Marine Engineering and Hanjin Shipping Co Ltd - are facing severe financial troubles as sluggish global economic growth and weak oil prices drove them into deep losses. 
 

Logistics News

Valenciaport Imports/Exports Rise, Offsetting Drop in Transhipment

Valenciaport Imports/Exports Rise, Offsetting Drop in Transhipment

Port of Barcelona Enhances Security and Efficiency With Genetec Technology

Port of Barcelona Enhances Security and Efficiency With Genetec Technology

New BIMCO Clause Addresses USTR Actions

New BIMCO Clause Addresses USTR Actions

Bergink Tapped to Head Alfa Laval Marine Division

Bergink Tapped to Head Alfa Laval Marine Division

Subscribe for Maritime Logistics Professional E‑News

EU lifts sanctions on three LNG tankers that were formerly Russian
Drop in US Treasury yields benefits Indian rupee
Tropical Storm Wipha lands in Vietnam, but heavy rains continue in the Philippines