STX Heavy Under Rehabilitation Process
The Seoul Central District Court begins a rehabilitation process for STX Heavy Industries Co, after the financially strapped company applied for protection late last month, reports Yonhap.
STX Heavy Industries is the latest victim in South Korea's faltering maritime industry who are trying to avoid bankruptcy.
Court will proceed with a debt-restructuring receivership program to prevent the company from being driven into insolvency.
STX Heavy Industries has been suffering from hefty debts and lower demand amid a prolonged economic slowdown.
The court plans to hire an accounting firm which will conduct due diligence on the company and report the results by the end of September, sources said. The company is required to file its rehabilitation programs with the court by Oct. 28.
"We will solicit various views from creditors, including financial institutions and small- and medium-sized enterprises that have done business with STX Heavy Industries, so as to minimize any negative impact on them," a court official said, declining to be identified.