Pantech, South Korea’s smallest smartphone maker, on Friday enlisted the support of the nation’s mobile carriers to help it get back on its feet after the creditors decided to push for a debt-for-equity swap that requires cooperation from SK Telecom, KT Corp. and U Plus Corp.

The creditors, led by Korea Development Bank, said that if the carriers fail to agree to cancel some 180 billion won ($178 million) in return for Pantech equity by July 8, the troubled smartphone manufacturer would have to be placed under a corporate workout.

In June, Pantech’s creditors decided to push for a debt-equity swap of 480 billion won ($475.8 million) with the aim to eventually sell it to a third party. So far, the carriers have been reticent to join, citing the company’s low brand value and faltering financial health. Pantech officials are currently enlisting the carriers’ support to help it stay afloat.

(wone0102@heraldcorp.com)