STX files for U.S. bankruptcy protection

Meanwhile, a judge in STX Offshore’s Korean bankruptcy proceedings has ordered the troubled shipbuilder to put its shipyard up for sale along with its profitable cruise ship subsidiary based in France, according to multiple media reports.    STX Offshore & Shipbuilding Co. has filed for bankruptcy protection in the United States as part of an overall restructuring process in its native South Korea, according to multiple media reports.
   Judge Jeff Bohm of the U.S. Bankruptcy Court in Texas on Thursday granted STX a temporary stay barring creditors from seizing any company assets located in the U.S. under Chapter 15 of the U.S. bankruptcy code.
   The country’s fourth largest shipyard, STX, filed for court receivership in Korea back in May, and foreign administrator Yoon Keun Jang said in court documents that certain creditors were attempting to circumvent the Korean proceedings by seizing STX’s U.S. assets. Without the stay, the company would “suffer irreparable harm,” said Jang.
   Meanwhile, a judge in STX’s Korean bankruptcy proceedings has reportedly ordered the troubled shipbuilder to put its shipyard up for sale along with its profitable cruise ship subsidiary based in France.
   According to a report in the Wall Street Journal, Choi Ung-young, a judge and spokesman for the Seoul Central District Court handling the case, said potential buyers can submit preliminary bids for STX Offshore and STX France – either together or individually – by sending a letter of interest to the court by Nov. 4.
   Ung-young said creditors and bondholders will vote on the company’s rehabilitation plan at a meeting that has been postponed until Nov. 11, and a vote against the plan will result in STX Offshore being liquidated.
   Korea’s “other” shipbuilders – the top three largest in the world – Hyundai Heavy Industries Co., Daewoo Shipbuilding & Marine Engineering Co. (DSME) and Samsung Heavy Industries Co., are all in the midst of their own financial restructuring and cost cutting plans as a result of falling demand and increased competition from shipyards in China.