SEOUL, May 25 (Xinhua) -- STX Offshore & Shipbuilding, South Korea's once No. 4 shipbuilder, is to be put under court receivership as the shipyard still suffers from massive losses despite the years-long financial assistance, the shipbuilder's main creditor bank said Wednesday.
The state-run Korea Development Bank (KDB) held a meeting with other main creditors, including the Export-Import Bank of Korea, to decide on whether to extend financial aid to the loss-making shipyard.
The meeting result was to place the shipbuilder under court receivership by the end of this month, ending the creditors-led restructuring that kicked off in April 2013, according to local media reports.
Even if the remaining ship orders were to be successfully delivered and paid, STX Shipbuilding would face funds shortage of between 700 billion won (590 million U.S. dollars) and 1.2 trillion won, according to the KDB estimate.
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