(LEAD) Pantech offered for sale under receivership

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SEOUL, Sept. 24 (Yonhap) -- South Korea's No. 3 smartphone maker, Pantech Co., which has been under court receivership, is now up for sale on Wednesday, in a desperate move to get the company back on its feet.

The latest development came as the Seoul Central District Court gave its nod to a plan by Pantech creditors led by the Korea Development Bank to sell the company, a month after it commenced the troubled firm's court receivership program.

Sale manager Samgjong KPMG will accept bids from potential buyers until 3 p.m. on Oct. 7.

The move came as the creditors took into account the fact that Pantech's liquidating value stands at 189.5 billion won (US$182.3 million), whereas its going-concern value is about 382.4 billion won.

Industry watchers anticipate that a foreign tech player will buy the troubled firm. Earlier this year, India-based Micromax had expressed its intention to acquire shares in Pantech.

Although Pantech graduated from a five-year debt rescheduling program in December 2011, its financial footing weakened again as it struggled with falling sales from increased competition in the local smartphone market dominated by Samsung Electronics Co. and LG Electronics Inc.

Pantech claims about 10 percent of the domestic handset market, which pales in comparison to Samsung's 60 percent and is behind LG's 15 percent.

colin@yna.co.kr
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