Pantech is on the verge of life-or-death situation. They still don’t have purchaser even though the deadline on 16th for the open sale is only a day away. If Pantech fails to sale, then they have no choice but to liquidate.

Last month, the negotiation with One Value Asset Management for sale did not go well and the court launched a 2nd time open sale right away. The registration for take over is due April 17th 3pm. The company and the court see this sale as the last opportunity. The court saw the seriousness of the situation and thus kept the chiefs in charge of the sale, Samjung KPMG and KDB Daewoo Securities’ mouth shut.

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<The deadline, April 17th, for the Pantech open sale that the court had promoted is almost here. There was no news of declaration of intent for taking over until morning of 16th.>

According to the official related with the sale, no one has yet sent in letter of intent for taking over up until the morning of April 16th. There are not many that has hopes for possibility of taking over at all. Encroachment of capital, near 900 million USD worth debt, and the fact that the company is not well known oversea are some main reasons why the sale isn’t going so well.

If any company comes with the declaration of intent for taking over, Pantech is ready to go. If not, Pantech must sell all their factories and patents and facilities to pay off their debt. Currently the amount that Pantech must pay off is about 139 million USD and the creditor would split the debt ratio receive the appropriate amount of share. Yet, the debt is also a burden as well.

The 1,400 workers that are taking break with cut in their annual salary may have to leave the company. The 550 cooperative companies and its 80,000 workers, and 300,000 family will be put to danger of losing living.

Pantech domestic mobile phone market share is within 10%. If Pantech disappears, the customers will have a shorter range of choice.

The mobile carriers will have less type of devices that can be offered to the customers. And also there will be changes in contracting and marketing policies. Nonetheless, there are some opinions that losing Pantech will not have such impact on the market and negotiators in the manufacturing industry.

Staff Reporter Ahn, Hocheon | hcan@etnews.com