South Korea's STX says to sell French unit by year-end

South Korea's STX Offshore & Shipbuilding plans to sell its French unit by the end of this year as the troubled company seeks a court-led debt restructuring programme, a spokesman said Thursday. 

The ailing firm -- once the country's number four shipbuilder -- filed for the restructuring in May after struggling for years with mounting losses caused by mismanagement and a slump in global demand.

STX will submit a revival proposal on Friday, its spokesman said, adding the it includes a plan to sell STX France to improve the parent firm's financial conditions.

"It is unfortunate that we have decided to let STX France go... but it was necessary as we were in desperate need for cash," Kong Doo-Pyoung told AFP.

A local unit of the accounting firm PricewaterhouseCoopers was hired last month to manage the sale, he said, adding the STX would accept bids in October before selecting a preferred bidder in November. 

"Our goal is completing the sales of STX France by the end of this year," he said, adding several potential buyers including some Asian firms had shown an interest.

The court is expected to decide the fate of the STX in the fourth quarter of this year, according to Seoul's financial authorities. 

STX shipbuilding -- part of the STX Group that has businesses from shipping to construction -- is seeking to cut hundreds of jobs at home and sell assets as it struggles with debts of 300 billion won ($258.3 million). 

Creditor banks since 2013 have provided more than 4 trillion won to help STX repay maturing debts but failed to turn the troubled shipbuilder around. 

The company -- under creditor banks' supervision since 2013 -- posted a net loss of 300 billion won last year. 

South Korean shipbuilders including STX and Daewoo Shipbuilding and Marine have struggled with mounting losses as global demand slows and competition from Chinese rivals intensified.

The government and creditor banks -- including the state-run Korea Development Bank -- in recent months have urged intense restructuring efforts including mass job cuts.

Plunging demand has also battered the global shipping industry, with South Korea's Hanjin filing for bankruptcy protection as it wallows under $5.37 billion in debts.