Commodities shipping operators STX Pan Ocean Co was one of the assets for sale in the STX Group that was sought to be sold to be able to raise KRW2.5 trillion won or US$2.2 billion of its debts. As such, share values in Pan Ocean fell by 10% to KRW3,970 at closing of trading.
STX Corp is the biggest shareholder in Pan Ocean and its share values also dropped nearly 7% to KRW6,310, its lowest since Feb 2005.
The STX Group is selling assets and negotiating with its major creditor Korea Development Bank to find ways to improve its bottom line. The current slump in dry bulk freight costs as well as a decline in demand for new ships has hit the core businesses of the conglomerate. This has trickled down to lack of business for its own commodities shipping company and Korea's biggest one in the market.
As there was no buyer for STX Group's 36% shareholdings in Pan Ocean, the future of the firm and the Group's is still up for discussion with its creditor bank.
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