Creditors of STX Group will likely pump at least 800 billion won ($730 million) into the troubled shipbuilding conglomerate in a bid to keep it afloat, a source said Sunday.
On Friday, STX Group’s troubled holding company, STX Corp., and two affiliates requested main creditor Korea Development Bank supply liquidity in return for its voluntary debt-relief and restructuring efforts.
“Creditor banks will discuss how much money will be extended to the group,” said the source. “The figure is expected to reach at least hundreds of billions of won given the amount of maturing bonds and operating bonds needed.”
Creditors had earlier provided STX Offshore & Shipbuilding Co. with 600 billion won to help the company repay maturing bonds and operate normally.
Market sources estimated creditors would have to inject at least 800 billion won in light of maturing bonds and funds needed to keep STX companies running.
Major STX subsidiaries are expected to pay back a total of 980 billion won in maturing bonds within this year.
Creditors are widely expected to pump funds into the group next year and thereafter. STX subsidiaries are expected to see 910 billion won worth of bonds to mature in the first half of 2014 and 420 billion won in the second half.
STX Group, a South Korean shipbuilding conglomerate, has seen its major affiliates struggling from liquidity shortages as they have been suffering from mounting debt due to the downturn in the shipbuilding and shipping sectors.
STX Corp. has 11 affiliates including STX Pan Ocean and STX Offshore & Shipbuilding under its wing.
In a desperate bid to tide over the liquidity crunch, STX Group has been seeking to sell units and affiliates. In March, STX Group signed a preliminary deal with a local private equity fund to sell a 43.15 percent stake in its energy unit. (Yonhap News)
