Samsung and LG are South Korea’s biggest smartphone manufacturers, by far. These two tech giants are far and beyond anything else over there and even on the global scale they’re in the very top of smartphone manufacturing lists. That being said, Pantech was Korea’s third largest smartphone manufacturer but the company has been struggling for a very long time. Their problem began back in 2013 when they reported significant loses six quarters in a row. In February this year the company filed for its second debt restructuring program and then in July they asked for a deadline extension to repay their extremely large debt. Pantech managed to convince creditors to extend their repayment deadline for two years (interest-free) but have then filed for court receivership, in other words, they filed for bankruptcy protection. This was a really tough year for Korean smartphone manufacturer and now we get the news that the company is for sale.
Pantech issued a public notice was issued and Seoul Central District Court was notified. Those interested can bid for the company until 3pm on October 7. Company’s liquidating value is 189 billion Korean won (about $182 million) while the concern value stands at 382 billion won (around $366 million). Analysts say that SK Telecom, Korean network carrier, is interested in purchasing the company and might be the frontrunner in that race. Samsung and LG might also be interested in purchasing this Korean smartphone manufacturer. There’s always the option that someone else will join the race, a foreign company perhaps. Micromax had almost bought a part of Pantech back in April.
I personally didn’t have much contact with Pantech products though I have used one of their flip phones back in the day. I believe that was a regular cellphone though, that was a long time ago. I can’t say this news comes as a surprise though, we’ve been hearing about Pantech’s financial problems for a long time now and this was just a matter of time I guess. Considering the price and the location of the company I believe that many companies will be interested in purchasing Pantech, we’ll find out soon. Have you ever owned a Pantech device?