Gyeongsangnam-do, Korea-based STX Offshore & Shipbuilding (f/k/a STX Shipbuilding) filed for Chapter 15 protection with the U.S. Bankruptcy Court in the Southern District of Texas, case number 16-35248. The Company, which designs and builds LNG/LPG carriers, product and bulk carriers, container ships, car and truck carriers, tankers, very large ore carriers and special and naval ships, is represented by Keith Hamilton Fichtelman of Lee Hong Degerman Kang & Walmey.
According to documents filed with the Court, “In or about April 2013, in an attempt to avoid formal bankruptcy proceedings, the Company entered into a Voluntary Business Normalization Program (‘VBNP’) with its principal creditor financial institutions….Despite substantial capital infusions from the creditor financial institutions through the VBNP, the Company has been unable to return to a sound financial footing. At the end of 2015, the Company had assets totaling KRW 2,431,272,000,000 and liabilities totaling KRW 5,455,552,000,000….On May 27, 2016, the Company applied for a commencement of Rehabilitation Procedure under the DRBA which initiated the Korean Bankruptcy Proceeding. On June 7, 2016, the Korean Bankruptcy Court issued its decision commencing rehabilitation proceedings under the DRBA and appointing the then current CEO of the Company, Mr. Byung Mo Lee, as the Company’s administrator.”
Court-filed documents continue, “Additionally, the Petitioner has already applied for and received recognition of the Korean Bankruptcy Proceeding in the courts of England and Wales. The English High Court of Justice, Chancery Division, Companies Court (Case number CR-2016-003518) issued an order on June 23, 2016, recognizing the Korean Bankruptcy Proceeding as a ‘foreign main proceeding’ in respect of the Company pursuant to the English Cross-Border Insolvency Regulations 2006.”
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