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STX mulls selling European yards

STX mulls selling European yards
South Korea's financially-shaken STX Group is mulling the sale of its European assets including its shipyards in France and Finland.

The shipbuilding and shipping group is coming under intense debt pressure as it was hit by the severe global downturn in the shipping and shipbuilding markets.

“We are now in the process of rearranging the corporate structure to focus on domestic shipbuilding. In this context, we are considering the sale of overseas assets and raise fresh liquidity,” a company spokesperson said.

Its European assets include shipbuilders STX Finland and STX France, controlled through subsidiary STX Europe.

The spokesperson said some potential buyers have expressed interest in buying stakes in the European shipyards and the picture will become clearer in the second half of this year.

STX Group has been seeking to sell its units and affiliates in a bid to secure cash as more than KRW1trn ($915.1m) in corporate debt will mature this year, according to its main lender Korea Development Bank,

The group had already sold a majority stake in STX OSV to Italian shipbuilder Fincantieri for about $589m.

STX Group's troubled holding company, STX Corp, has 11 affiliates including STX Pan Ocean and STX Offshore & Shipbuilding.

Meanwhile, market sources estimated creditors might inject at least KRW800bn in light of maturing bonds and funds needed to keep the STX companies running.

Creditors had earlier provided STX Offshore & Shipbuilding with KRW600bn to help the company repay maturing bonds and continue its day-to-day operations.