South Korea’s STX Offshore & Shipbuilding Co. Files for US Bankruptcy Protection

South Korean STX Offshore and Shipbuilding Company filed for Chapter 15 bankruptcy protection on October 19, 2016 in Texas. The filing comes as “a bid to stop creditors from trying to seize its assets in the U.S. as the troubled shipyard looks to sell its business overseas.” Chapter 15 bankruptcies deal with cross-border/international insolvencies.

“Under Chapter 15, STX is seeking a U.S. bankruptcy court’s recognition of its Korean bankruptcy case as the main proceeding. If recognized by Judge [Jeff] Bohm, STX will be entitled to receive the benefits of U.S. bankruptcy law, including the automatic stay that halts lawsuits and prevents creditors from seizing assets.”

The matter was filed in the Southern District of Texas and the case number is 4:16-bk-35248.

You can read the Wall Street Journal’s article here.

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