STX to Slash Jobs, Sell Yard
To stay above water by restructuring, South Korean Shipbuilder STX Offshore & Shipbuilding Co. plans to lay off about a third of its workforce and sell a yard in France, says a report in WSJ.
The country's fourth largest shipyard filed for receivership in May. The court has been supervising the firm’s rehabilitation since June.
STX told a bankruptcy court in Korea that it has hired PricewaterhouseCoopers to help it sell STX France, a profitable yard in France specializing in building cruise ships.
STX said it plans to cut its 2,090 staff in Korea by 35% by the end of September.
The shipbuilder has been undergoing a court-led restructuring scheme, is revitalizing a plan to sell STX France by hiring a manager for its sale this week after two previous attempts failed, reports Korea Herald.
This is the third time STX is trying to sell STX France, which it took over in 2009. STX Offshore & Shipbuilding has a two-thirds stake through its subsidiary STX Europe.
Meanwhile, according to Pulse, the state-owned Korea Development Bank (KDB) is considering to provide fresh financial aid worth 60 billion won ($53.7 million) to STX Offshore & Shipbuilding Co., which is under court receivership, in a bid to advance the ongoing restructuring process.