Asia/Pacific News
New Loan for STX Pan Ocean
Korea Development Bank has agreed to loan 200 billion won ($179 million) to STX Pan Ocean Co. as the bulk carrier works to emerge from court receivership, the Korea Economic Daily reports.
As of last week, the bank was working to finalise the loan, working with other creditor banks including Korea EximBank, Korea Finance Corp., and Nonghyup Bank.
"If other creditors refuse to participate, we will do it alone," a Korea Development Bank official said.
The loan would provide working capital to help STX Pan Ocean keep its vessels in operation.
Despite being in receivership, the company is responsible for paying some obligations, including unpaid wages and debts from bareboat charter hire purchase agreements before starting a corporate workout program.
"As STX Pan Ocean commissioned 59 vessels to STX Offshore & Shipbuilding for the 2008-2012 period, it must pay back the bill between 2013 and 2017," a bank official said.
"As the company must pay bills quickly but get revenue for years to come, it is likely to suffer a liquidity problem.
"That's why we need to lend the money for its working capital needs."
STX Pan Ocean, a unit of South Korea's STX Group, filed for restructuring in June, citing high bunker prices and low rates.
The company has had a number of its ships arrested for unpaid bunker claims.
