Creditors have decided to provide additional liquidity to the shipbuilding unit of ailing STX Group in a move to help it overcome a cash crunch, officials said Wednesday.
The main creditor, Korea Development Bank, said that more than
75 percent of other creditors approved the rescue measures including 1.8 trillion won ($1.69 billion) in liquidity supply for STX Offshore & Shipbuilding.
The rescue measures also include a debt-to-equity swap worth around 1.3 trillion won, they said. The total cash offering would amount to 4.5 trillion won when previously pledged liquidity injection is also included.
STX Group, the country's 13th-biggest conglomerate, has seen its major affiliates struggle from liquidity shortages and mounting debt due to the downturn in the shipbuilding and shipping sectors.
STX Group has 10 affiliates, including STX Pan Ocean and STX Offshore & Shipbuilding, under its wing. (Yonhap)