Korean handset maker, VK, has been quiet lately and unlike its contemporaries in the cellular phone business, they haven't released a lot of new handsets. Now we know the reason why. The company has been declared bankrupt after it failed to pay its creditors and trading in the company's shares has been suspended pending a de-listing on July 22.

South Korean newspapers were buzzing over this development as a lot of them had reported recently that the Korean company owed its creditors 1.78 Billion Korean Won (U.S.$1.90 Million). They also mentioned that the International Bank of Korea has suggested that VK must put in place a strategy to deal with its debt or face collapse. This stern statement came shortly after the passing of a deadline to pay back, but there are also reports saying that VK was apparently able to pay its creditors soon after the deadline.

VK was initially involved in battery manufacturing, and it is only in 2002 when they began to make cellular phones. At first, the company was successful as they post sales of approximately 400 Billion Korean Won (U.S.$426.84 Million) in 2004, but this was not to last. Competition is fierce, plus the company miscalculated big time with the costly purchase of French phone company VMTS in 2005. However, all is not lost. VK CEO Yi Cheol-sang vowed that the company will be back.

How? That we don't know for now. But it was rumored that Illinois-based Motorola had signed a lucrative handset design and manufacturing deal with VK. If this is the case, then Motorola may be VK's only chance of getting back in the saddle once more.