Italian shipbuilding giant Fincantieri SpA and Dutch counterpart Damen Shipyards Group are in the running to buy STX France, which has been put on the block by Korean debt-ridden parent STX Offshore & Shipbuilding Co, reports WSJ.

Meanwhile, STX Offshore - once the Korea's number four shipbuilder - has submitted a proposal to a court on how to revive its business, according to a report in AFP. STX filed for the restructuring in May after struggling for years with mounting losses caused by mismanagement and a slump in global demand.

STX France, which specializes in building cruise ships, is the only profitable unit of STX, with a full order book for the next seven years.

The sale of the French 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.

STX France is a good asset, but there is still no certainty that an agreement with the bidders will be reached, said sources.