South Korea's STX Offshore and Shipbuilding -- once the world's fourth-largest shipbuilder by orders -- is staring down the barrel of court receivership... after it failed to submit a self-rescue plan within the given deadline.<br />Kim Hyo-sun reports. <br /> STX Offshore and Shipbuilding and its union tentatively agreed on Tuesday to a proposed restructuring plan to keep the cash-strapped company afloat.<br />The deal,... proposed by its main creditor Korea Development Bank and the government,... calls for a 40 percent reduction in its fixed costs,... including a 75 percent reduction in labor costs through unpaid leave and reductions in wages and incentives. <br /> Yet,... the company's fate remains unclear as the KDB has said it will put the troubled shipbuilder under court receivership,... as the tentative agreement was reached after the deadline of 5 p.m. on Monday.<br />It also said the company had failed to submit a written pledge for a self-rescue plan.<br />Although the company says it can submit the pledge by Tuesday morning,... its union is saying a final agreement will only be possible once the two parties reach a conclusion on detailed personnel restructuring. <br />Furthermore,... the union needs to explain the deal to its members. <br />While STX Offshore and Shipbuilding was once the world's fourth-largest shipbuilder by orders,... it has been struggling with a sharp drop in orders following the global financial crisis.<br /> STX was put under court receivership in 2016,...but graduated from the program in July 2017. <br />Kim Hyo-sun, Arirang News. <br />
