The sale of STX Pan Ocean Co. fell through as no potential bidders expressed their interest in South Korea’s leading bulk carrier, raising the possibility that the shipping line may be taken over by a state-run policy lender.

According to industry sources, no potential bidders have submitted letters of intent for STX Pan Ocean.

South Korean shipbuilding and shipping conglomerate STX has been seeking to sell its key affiliate STX Pan Ocean as part of efforts to improve its financial health.

The group said earlier its business portfolio will center on the shipbuilding business after the planned sales of stakes in its affiliates.

STX Pan Ocean suffered huge losses last year as shipping rates fell sharply amid the global economic slowdown.

Source: Yonhap