By Kim Yoo-chul
Pantech CEO Lee Joon-woo said the nation's smallest handset vendor needs help from local carriers to survive.
"If local carriers refuse to join the 'cash-increase' plan led by our creditors, then we may declare bankruptcy. I know carriers are passive to join the campaign. We have no time. Please help us," Pantech CEO Lee Joon-woo told reporters in a hurriedly arranged news conference at its headquarters in Sangam, western Seoul, Thursday.
The executive said Pantech isn't in a position to invite investors to save the corporate due to weak financial soundness.
"Pantech's brand recognition will be tainted. When you look at the number of our local components suppliers, a termination will result in huge job losses. For the industry, we hope to get one more chance for survival," said the CEO.
The press meeting was more than sentimental. All Pantech's key executives expressed a sincere apology to its customers and other interested parties.
Pantech has already filed for not one, but two debt restructurings, the most recent back in February. Pantech will have to pay back debts of 480 billion won that they owe to its creditors led by the Korea Development Bank (KDB).
The creditors recently approved a plan to launch a cash-increase campaign to save the handset vendor.
However, the nation's three local carriers, which also have a combined 180 billion won in Pantech debt decided not to participate in the plan, according to officials from the carriers.
An official at KDB said the main Pantech creditor bank is still persuading top executives at the carriers not to hold out the money, though an official at SK Telecom said the nation's top carrier is negative to exchange 90 billion won debt for equity.
"Can Pantech survive? This is very difficult question," said an official at KT. Pantech owes SK Telecom 90 billion won, and they owe KT and LG Uplus with 45 million won, each.
Pantech reported 6.7 billion won operating loss in the first quarter of this year, alone, said the company.
The Pantech CEO Lee said it plans to sell more of its Vega-branded tablets and smartphone outside the Korean Peninsula by providing them with affordable prices but with advanced hardware specifications to keep customers buying Pantech products.
"Pantech will be aggressive to improve our financial soundness and attract new investors. We will strictly follow a 'workout program' if we are given another chance," said the CEO, adding it sold 490,000 units from outside.
"If SK Telecom, KT and LG Uplus decide they want their money instead of equity, Pantech has no option but to declare bankruptcy. That leaves all of the company's investors with the headache of liquidating Pantech's assets. A strategic decision should follow," said a fund manager from a U.S.-based investment bank in Seoul, by telephone.
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| Pantech CEO Lee Joon-woo |
"If local carriers refuse to join the 'cash-increase' plan led by our creditors, then we may declare bankruptcy. I know carriers are passive to join the campaign. We have no time. Please help us," Pantech CEO Lee Joon-woo told reporters in a hurriedly arranged news conference at its headquarters in Sangam, western Seoul, Thursday.
The executive said Pantech isn't in a position to invite investors to save the corporate due to weak financial soundness.
"Pantech's brand recognition will be tainted. When you look at the number of our local components suppliers, a termination will result in huge job losses. For the industry, we hope to get one more chance for survival," said the CEO.
The press meeting was more than sentimental. All Pantech's key executives expressed a sincere apology to its customers and other interested parties.
Pantech has already filed for not one, but two debt restructurings, the most recent back in February. Pantech will have to pay back debts of 480 billion won that they owe to its creditors led by the Korea Development Bank (KDB).
The creditors recently approved a plan to launch a cash-increase campaign to save the handset vendor.
However, the nation's three local carriers, which also have a combined 180 billion won in Pantech debt decided not to participate in the plan, according to officials from the carriers.
An official at KDB said the main Pantech creditor bank is still persuading top executives at the carriers not to hold out the money, though an official at SK Telecom said the nation's top carrier is negative to exchange 90 billion won debt for equity.
"Can Pantech survive? This is very difficult question," said an official at KT. Pantech owes SK Telecom 90 billion won, and they owe KT and LG Uplus with 45 million won, each.
Pantech reported 6.7 billion won operating loss in the first quarter of this year, alone, said the company.
The Pantech CEO Lee said it plans to sell more of its Vega-branded tablets and smartphone outside the Korean Peninsula by providing them with affordable prices but with advanced hardware specifications to keep customers buying Pantech products.
"Pantech will be aggressive to improve our financial soundness and attract new investors. We will strictly follow a 'workout program' if we are given another chance," said the CEO, adding it sold 490,000 units from outside.
"If SK Telecom, KT and LG Uplus decide they want their money instead of equity, Pantech has no option but to declare bankruptcy. That leaves all of the company's investors with the headache of liquidating Pantech's assets. A strategic decision should follow," said a fund manager from a U.S.-based investment bank in Seoul, by telephone.
