Netherlands-based shipbuilder Damen Shipyards Group and Italy-based shipbuilding giant Fincantieri are in talks to purchase STX France, a subsidiary of debt-ridden South Korean group STX Offshore & Shipbuilding Corporation., according to several news reports.

Reports suggest that the sale of the Saint-Nazaire, France-based yard is a key part of a restructuring plan by STX, which also includes cutting by 35% its 2,090 staff in Korea by the end of September. The company’s creditors will decide in October whether to accept the plan. If it is rejected, the company will be liquidated.

The French government also holds a 33% minority stake in STX France.