STX Green Logistics shares fell more than 13% in early trading as investor sentiment weakened on a legal dispute tied to an STX affiliate guarantee and a Korea Exchange warning over a delayed disclosure.
According to the Korea Exchange, STX Green Logistics was trading at 5,180 won as of 10:29 a.m. on the 22nd, down 810 won, or 13.52%, from the previous session. The stock extended losses from the opening.
The biggest drag appeared to be legal risk surrounding the group structure, raising concerns that contingent liabilities across the broader STX group could materialize.
The company disclosed that it provided 185.7 billion won in debt guarantees for borrowings by STX, a related party of its largest shareholder, from Nov. 29, 2023, to Nov. 30, 2024. It said STX Green Logistics was created through a spin-off from STX on Sept. 1, 2023, and that under the Commercial Act it shares joint and several repayment responsibility with STX, the surviving company, for debts incurred before the split.
At the same time, STX Green Logistics filed a lawsuit at the Seoul Southern District Court against the Korea Development Bank seeking confirmation of nonexistence of debt. The suit asks the court to rule that no guarantee obligation exists in connection with an STX-related joint and several guarantee agreement signed on Nov. 28, 2024.
Disclosure risk added to the pressure. The Korea Exchange notified STX Green Logistics of a preliminary designation as an unfaithful disclosure company, citing that it disclosed a Nov. 20, 2023, decision on providing a debt guarantee to another party only on April 20 this year, about two years late. Under KOSPI market disclosure rules, the exchange said the delay amounts to a failure to disclose.
* This article has been translated by AI.
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