With a high dependence on the saturated and highly competitive Korean market, the company has struggled to turn around its results, especially following the government crackdown earlier this year on excessive handset subsidies by operators. Its significant losses also have made it difficult for the company to find a buyer. Last year it reported an operating loss of KRW 297 billion on revenues of around KRW 1.4 trillion.
About a year ago, Samsung came to the rescue, investing USD 51 million for a 10 percent stake in Pantech to become its third-largest shareholder. Qualcomm is also a shareholder, with a 12 percent stake. Once the court receivership filing is accepted by the bankruptcy court, the company and its creditors have to come up with a revival plan that is subject to a court approval within a year.
