STX Pan Ocean Co., the country's leading bulk carrier, said that CEO Kang Duck-soo (who is also chairman of the STX Group) has resigned as the shipper has been under court receivership since June amid a deepening liquidity crisis, reports Yonhap.
The cash-strapped STX Group, South Korea's 13th biggest conglomerate, has seen its major affiliates struggling from liquidity shortages and mounting debt due to the downturn in the shipbuilding and shipping sectors.
Creditors have pumped liquidity into ailing STX Group in return for overhaul efforts.
STX Group's holding company STX Corp. and its three ailing units -- STX Offshore & Shipbuilding, STX Heavy Industries and STX Engine -- have requested that creditor banks supply liquidity.
According to Yonhap, citing NICE Investor's Service, STX Group had a combined 2.86 trillion won in corporate debt to be paid out by 2015, of which 580 billion won was due this year.
In related news from Reuters
STX Offshore & Shipbuilding is considering the sale of shipyards in France, Finland and China as STX Group looks to address its mounting debt.
STX Group since last year has shed assets including a stake in STX Energy and Singapore-listed Vard Holdings Ltd, formerly STX Holdings Ltd.
Sources: 1.Yonhap 2. Reuters