STX Offshore to get 1.8t won rescue funds

[SEOUL] Creditors of South Korea's STX Offshore & Shipbuilding Co have decided to lend the debt-laden shipbuilder an extra 1.8 trillion won (S$2.1 billion), two creditor sources with direct knowledge of the matter said.

The fresh funds are being made available after a new round of due diligence uncovered loss-making orders that STX Offshore took on to avoid a short-term liquidity squeeze, one person familiar with the matter said.

Under terms of the new loan, the extra money is to be paid back before other debt when STX Offshore has funds available, the person said. Main creditor Korea Development Bank (KDB) and other banks had already agreed to inject about 2.7 trillion won into STX Offshore last year.