South Korea’s number three handset maker, Pantech, has seen better days, having filed for bankruptcy earlier this year.
In July, the company asked for a deadline extension for repaying outstanding debt; and in August, despite convincing creditors to extend the repayment deadline by two years interest-free, it filed for court receivership, an equivalent to filing for Chapter 11 bankruptcy protection. This week, Pantech put the company up for sale.
Along with its creditors, Pantech is looking to sell the company at the Seoul Central District Court. Bidders will have until 3.00 p.m. on October 7 to submit offers.
Pantech’s liquidating value stands at 189 billion Korean won ($182 million), while the going concern value is more than double that amount at 382 billion won ($366 million).
According to industry analysts, Korean carrier SK Telecom could be the frontrunner for the bid, though we may also see other Korean conglomerates such as Samsung, LG and Hyundai Motor Group participating. Moreover, some foreign company could also compete to get its share of Pantech, which is known to make some rock-solid devices that more often than not don’t end-up selling in the Western hemisphere.