A bankruptcy court on Wednesday gave a go-ahead to a debt relief request by Optis Co., a Korean manufacturer of computer peripheral devices, giving it a chance to turn itself around through a debt reorganization scheme.
The plan proposes to turn 83.2 percent of its overdue bonds worth 125.9 billion won ($111.4 million) into equity. The company would have to pay back the remaining dues in cash over the next 10 years. It must be able to turn the business around next year as the scheme requires the company to pay back 45 percent of its dues in lump sum in 2018.
Optis founded in 2005 was relatively unknown maker for optical sensors for smartphone cameras, computers and other electronic devices until it joined forces with a telecommunication equipment maker Solid Inc. to buy budget mobile phone maker Pantech in 2015 from the bankruptcy court.
Pantech was able to normalize and release new phones following the acquisition.
But Optis ran into its own financial trouble and had to turn to the bankruptcy court because it could not afford to pay interest on the hefty loans it sought to buy a 4 percent stake in Pantech. Optis recorded 2.6 billion won in operating profit on sales of 246.2 billion won last year.
By Yoo Tae-yang
[ⓒ Pulse by Maeil Business News Korea & mk.co.kr, All rights reserved]