Creditors of troubled shipbuilder STX have decided to accept the company’s self-rescue plan. 

The state-run Korean Development Bank(KDB) announced on Wednesday that it decided to withdraw a plan to place STX Offshore & Shipbuilding under court receivership. The KDB said it reached the decision after reviewing the company’s restructuring plan submitted by the management and labor union a day earlier, and consulting with related organizations. 

The union agreed to cut labor costs by 75 percent through unpaid leave, salary cuts and welfare benefit reductions on the condition that management does not lay off any workers. 

The KDB plans to provide financial assistance to the cash-strapped shipbuilder by issuing refund guarantees. 

However, it says it will stick to a plan announced last month and not provide additional funds for the company.