The court said the future of Pantech will now be determined through negotiations with the creditors, with options including another round of bidding or liquidation. (image: Yonhap)
SEOUL, Apr. 20 (Yonhap) — A local court said Monday the latest bidding for cash-strapped South Korea handset maker Pantech Co. has failed as all three bidders lacked the capability to buy the company, casting doubt over the firm’s normalization.
On Friday, the bankruptcy panel of the Seoul Central District Court said three investors offered bids to purchase the troubled smartphone maker, although the names were not disclosed.
“After reviewing the letters of intent from the bidders, we concluded that they all lacked practical willingness and capabilities to purchase Pantech,” the court said. “Thus, we have decided not to carry out the follow-up process for the sale.”
The court said the future of Pantech will now be determined through negotiations with the creditors, with options including another round of bidding or liquidation.
The first open bidding was held in November but fell through as there were no prospective buyers. The court then sought to sell Pantech in a private deal after a U.S.-based consortium expressed interest in taking over the company early this year, but that ended in vain.
Pantech started out as a small pager manufacturer and after early success as a handset maker went under in 2007 as its debt increased and an acquisition of a local handset maker resulted in losses.
The company was rescued and put under a five-year debt rescheduling program in 2007. But its financial footing weakened again as it struggled with falling sales from increased competition in the smartphone market dominated by giants like Samsung Electronics and Apple Inc.
In December 2011, it ended the debt rescheduling program but a continued drop in sales led the firm to file for court receivership in August last year.
(Yonhap)
