South Korea's STX Offshore and Shipbuilding -- once the world's fourth-largest shipbuilder by orders -- is staring down the barrel of court receivership... after it failed to submit a self-rescue plan within the given deadline.
Kim Hyo-sun reports.
STX Offshore and Shipbuilding and its union tentatively agreed on Tuesday to a proposed restructuring plan to keep the cash-strapped company afloat.
The deal,... proposed by its main creditor Korea Development Bank and the government,... calls for a 40 percent reduction in its fixed costs,... including a 75 percent reduction in labor costs through unpaid leave and reductions in wages and incentives.
Yet,... the company's fate remains unclear as the KDB has said it will put the troubled shipbuilder under court receivership,... as the tentative agreement was reached after the deadline of 5 p.m. on Monday.
It also said the company had failed to submit a written pledge for a self-rescue plan.
Although the company says it can submit the pledge by Tuesday morning,... its union is saying a final agreement will only be possible once the two parties reach a conclusion on detailed personnel restructuring.
Furthermore,... the union needs to explain the deal to its members.
While STX Offshore and Shipbuilding was once the world's fourth-largest shipbuilder by orders,... it has been struggling with a sharp drop in orders following the global financial crisis.
STX was put under court receivership in 2016,...but graduated from the program in July 2017.
Kim Hyo-sun, Arirang News.
