Unionized workers of cash-strapped shipbuilder STX have tentatively agreed to take pay cuts for production staff.

This comes after STX Offshore & Shipbuilding's creditors on Tuesday announced that the company will be placed under court receivership, as it failed to meet the deadline to submit a self-rescue plan.

The union agreed early Tuesday to take unpaid leaves and wage cuts, meeting calls from the government and creditors for a 75 percent reduction in labor costs..

The company and its workers reached an agreement in the early hours of Tuesday and are expected to submit a statement of confirmation to the state-run Korea Development Bank(KDB), STX's largest shareholder. 

However, the KDB said the procedure for court receivership will continue to go ahead as the company missed the Monday midnight deadline.
 
Still, STX believes there could be a sudden breakthrough if it submits a convincing rescue plan, and hasn't ruled out the possibility of a deal.