"The company ended up filing for court receivership due to a sharp fall in the Baltic Dry Index, delayed recovery of the shipping industry, oversupply of ships, troubled ship-chartering contract and oil price hikes," STX PO said in a statement.
The company has had a number of rises and falls during 2013 after its main creditor Korea Development Bank announced the possibility of acquiring Pan Ocean from STX Group, but decided against the idea after due diligence and denied the company an emergency loan.
"The court receivership doesn't mean KDB will forsake STX PO," KDB's executive director, Ryu Heui Kyoung told reporters today, "the bank will take the role to normalise STX PO if needed."
Shares in STX PO, which have now been suspended from trading, have tumbled over 45% in 2013 as freight rates remain low and the company's debts mounted to 5.5tn won, ($4.9bn).
STX Corp, STX Offshore & Shipbuilding, STX Heavy Industries and STX Engine have also applied for corporate restructuring this year.
The application for court receivership will be considered by the Seoul Central Court.
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