Most Popular
-
1
Actor Jung Woo-sung admits to being father of model Moon Ga-bi’s child
-
2
Wealthy parents ditch Korean passports to get kids into international school
-
3
Man convicted after binge eating to avoid military service
-
4
First snow to fall in Seoul on Wednesday
-
5
Final push to forge UN treaty on plastic pollution set to begin in Busan
-
6
Korea to hold own memorial for forced labor victims, boycotting Japan’s
-
7
Nvidia CEO signals Samsung’s imminent shipment of AI chips
-
8
Industry experts predicts tough choices as NewJeans' ultimatum nears
-
9
Job creation lowest on record among under-30s
-
10
NK troops disguised as 'indigenous' people in Far East for combat against Ukraine: report
STX Pan Ocean at crossroads for survival
Board members to choose emergency remedies like court receivership
By Kim Yon-sePublished : June 6, 2013 - 20:28
The financially distressed STX Pan Ocean will hold an extraordinary board meeting on Friday to select an alternative to a stake auction to normalize the company’s management.
The scheduled board meeting is to convene as the nation’s largest bulk carrier operator ― as a shipping unit of the ailing STX Group ― has reportedly failed to find an acquirer for the past six months.
STX Pan Ocean has been in M&A talks with the state-run Korea Development Bank, which holds a 14.99 percent stake in the company as the second-largest shareholder.
KDB, however, has reportedly backed away from its earlier plan to take over the company after conducting sketch-level due diligence on the company.
Based on its inquiry into financial statements of STX Pan Ocean, the bank has found that the STX unit’s cumulative loss between 2009 and the first quarter of 2013 reached about 500 billion won ($450 million).
Aside from KDB, few investors have expressed willingness to take part in a bidding to acquire the company.
As a substitute, KDB executives ― in coordination with STX Corp. as the largest shareholder of STX Pan Ocean ― are considering applying for debt management of STX Pan Ocean with the court.
The feasible court receivership is not the first time for the bulk carrier. STX Pan Ocean, formerly Pan Ocean Shipping, was under management by the court from 1994 to 2002.
In 2004, STX Group took over Pan Ocean Shipping by beating 13 domestic and overseas bidders including Kumho Asiana Group.
STX Group’s other main units such as STX Offshore & Shipbuilding, STX Heavy Industries and STX Engine were hit hard by the global shipbuilding industry’s long slump caused by the global economic slowdown and eurozone debt crisis.
Financial authorities and creditors of the debt-saddled STX Group are considering seizing the assets of the conglomerate’s chairman Kang Duk-soo. Kang had said he was “ready to do whatever it takes and put up with any difficulties.”
Like STX Pan Ocean, the nation’s major shipping lines are also saddled with snowballing debt that mature this year, boding ill for the shipping industry already facing dried-up liquidity.
According to data compiled by the financial investment industry, the four major shippers ― STX Pan Ocean, Hanjin Shipping, Hyundai Merchant and SK Shipping ― have about 2 trillion won worth of corporate debt that matures this year. The figure takes up 28 percent of their collective debt.
By Kim Yon-se (kys@heraldcorp.com)
The scheduled board meeting is to convene as the nation’s largest bulk carrier operator ― as a shipping unit of the ailing STX Group ― has reportedly failed to find an acquirer for the past six months.
STX Pan Ocean has been in M&A talks with the state-run Korea Development Bank, which holds a 14.99 percent stake in the company as the second-largest shareholder.
KDB, however, has reportedly backed away from its earlier plan to take over the company after conducting sketch-level due diligence on the company.
Based on its inquiry into financial statements of STX Pan Ocean, the bank has found that the STX unit’s cumulative loss between 2009 and the first quarter of 2013 reached about 500 billion won ($450 million).
Aside from KDB, few investors have expressed willingness to take part in a bidding to acquire the company.
As a substitute, KDB executives ― in coordination with STX Corp. as the largest shareholder of STX Pan Ocean ― are considering applying for debt management of STX Pan Ocean with the court.
The feasible court receivership is not the first time for the bulk carrier. STX Pan Ocean, formerly Pan Ocean Shipping, was under management by the court from 1994 to 2002.
In 2004, STX Group took over Pan Ocean Shipping by beating 13 domestic and overseas bidders including Kumho Asiana Group.
STX Group’s other main units such as STX Offshore & Shipbuilding, STX Heavy Industries and STX Engine were hit hard by the global shipbuilding industry’s long slump caused by the global economic slowdown and eurozone debt crisis.
Financial authorities and creditors of the debt-saddled STX Group are considering seizing the assets of the conglomerate’s chairman Kang Duk-soo. Kang had said he was “ready to do whatever it takes and put up with any difficulties.”
Like STX Pan Ocean, the nation’s major shipping lines are also saddled with snowballing debt that mature this year, boding ill for the shipping industry already facing dried-up liquidity.
According to data compiled by the financial investment industry, the four major shippers ― STX Pan Ocean, Hanjin Shipping, Hyundai Merchant and SK Shipping ― have about 2 trillion won worth of corporate debt that matures this year. The figure takes up 28 percent of their collective debt.
By Kim Yon-se (kys@heraldcorp.com)
