STX Corporation will publicly sell off its creditors’ stake to prevent the cancellation of its listing on the stock market.
STX Corporation whose capital was completely impaired, publicly will sell off its creditors’ stake to prevent the cancellation of its listing on the stock market.
On January 11, STX Corporation announced that the Creditor Financial Institution Council decided to sell common stocks held by financial institutions of council members and common stocks to be acquired through a new debt-for-equity swap through an open competitive bidding system. The council will receive a letter of intent for acquisition beginning by February 3. The lead manager is EY Hanyoung Accounting Firm.
The sell-off aims to find a new owner of STX Corporation before the company is delisted from the stock market after struggling due to its complete impaired capital. The sell-off should be completed by April not to be kicked out of the bourse. As of the third quarter of last year, STX Co.’s capital was completely impaired.
The Korea Exchange will start a process of delisting the troubled company in the first half of this year if its completely impaired capital continues. “There has been no decision about additional management normalization measures such as the issue of new shares to be purchased.” said a representative of STX Corporation. “We will re-announce the selection of a preferred bidder or the date of the conclusion of a main contract within three months.”
The Original Posted by Jung Min-hee/Business Korea