STX Offshore and Shipbuilding Company will be placed under court receivership.
 
The company’s creditor bank, the Korea Development Bank(KDB), revealed the decision during a meeting in Yeouido, Seoul on Wednesday.
 
KDB said requesting court receivership has become inevitable for the company, adding that there is no economic justification to continue a creditor-led debt restructuring program with the injection of additional funds.
 
STX Offshore and Shipbuilding Company entered into a creditor-led workout program in April 2013 after its financial conditions worsened after having received orders at excessively low prices.
 
Creditors injected more than four trillion won into the company over 38 months, but the firm saw an operating loss of one-and-a-half trillion won in 2013 and another worth 182 billion won last year.
 
KDB said that it will finalize by the end of this month a plan to place the shipbuilder under court receivership after holding discussions with creditors.