STX Offshore & Shipbuilding Co., a midsize local shipyard, will receive 450 billion won ($385 million) in financial aid from its creditors in return for thorough restructuring, industry sources said Friday.

According to the sources, the creditors, led by the state-run Korea Development Bank, have decided to salvage the shipbuilder from a liquidity shortage.

Local lenders' exposure to STX Offshore & Shipbuilding stood at 4.29 trillion won at the end of September, with KDB alone extending the largest amount of loans, totaling 1.89 trillion won.

STX Shipbuilding has been under the control of its creditors since 2013, in line with a protracted slump in the shipbuilding sector.

The creditors had provided over 4 trillion won to the shipyard, but it is still reeling from losses. Last year, the shipyard suffered operating losses of 314 billion won.

In return for additional financial aid, STX Offshore's business portfolio will be reorganized to focus on tanker ships and small-sized LNG carriers, according to the sources.

STX Offshore will also slim down its workforce by 930 by the end of next year, and the wages of all of its employees will be cut by 10 percent, they said. (Yonhap)