Pantech, the Korean maker of mobile devices that is facing fierce competition from Samsung Electronics Co., LG Electronics Inc. and Apple Inc., sought bankruptcy protection in the U.S. as it seeks to reorganize at home.

The company, incorporated in Seoul, listed debt of as much as $1 billion and assets of as much as $500 million in a filing yesterday in U.S. Bankruptcy Court in Atlanta. Chapter 15 protects foreign companies from U.S. lawsuits and creditor claims while they reorganize abroad. Pantech asked the U.S. court to recognize the proceeding pending before the Seoul Central District, Third Bankruptcy Division as its foreign main proceeding. The company’s creditors agreed to put the company up for sale.

Sales dropped due to intensifying competition among mobile device manufacturers and market saturation since 2012, and the dramatic drop of domestic sales due to business suspension imposed by Korea Communications Commission to the mobile carriers in March 2014 led to significant strain on cash flow, Pantech chief executive officer Joonwoo Lee said in court papers. (Bloomberg)