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Creditor Banks to Inject 400 Bil. Won to STX Heavy and STX Engine

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Friday, September 13th, 2013
SEOUL, KOREA- The creditor banks of STX Heavy Industries and STX Engine have decided to inject an additional fund of 400 billion won by this weekend. According to Korea Development Bank, the principal creditor bank for STX Group, on September 11, the banks would sign a voluntary agreement with STX Heavy by the 12th and disburse a fresh fund of 250 billion won from the following day.It is expected the all funds will be paid out by the 17th, although the exact time schedule differs by banks.
 
A Korea Development Bank official said, "Most of the money will be used to pay for bills to partner firms and subcontractors ahead of the Chuseok Holidays next week." Meanwhile, the 150-billion-won fund will be given to STX Engine that has already signed a voluntary agreement with the creditor banks on the 5th.
 
Earlier the creditor banks had reckoned the volume of money to be paid out to the two STX Group companies would be in the range of 350 billion won each. The reason the actual amount of money to be disbursed is substantially lower than this is the banks kept some of the funds to pay for guarantee obligations. STX Heavy Industries and STX Engine have a large amount of surety obligations to China's STX Dalian Heavy Industries and STX Dalian Engine, respectively.

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