Four firms bid to buy South Korea's STX, French unit

Four companies submitted bids to buy South Korea's troubled STX Offshore and Shipbuilding, a Seoul bankruptcy court said Friday, with media reports suggesting they included three European firms. A court spokesman declined to identify the bidders, or clarify what precisely they had bid on. Buyers were offered the choice of buying STX and its profitable French unit separately or as a package.
The Seoul Economic Daily, citing industry sources, said the bidders included Italian shipbuilder Fincantieri, Dutch group Damen and French state-controlled naval shipbuilder DCNS. Once South Korea's number four shipbuilder, STX sought a court-led restructuring in May after struggling for years with mounting losses caused by mismanagement and a slump in global demand. Creditor banks have stumped up more than four trillion won ($3.5 billion) to bail the company out, but its total debts stood at 7.3 trillion won as of June. STX Offshore stakeholders and creditors are scheduled to meet on November 11 to approve the company's rehabilitation plan. If the plan is rejected, STX faces liquidation. STX bought in 2008 a 66.6 percent stake in a huge naval shipyard in the western French port of Saint-Nazaire, later named STX France.