ProMOS Technologies, one of Taiwan's financially-troubled DRAM chip suppliers, will receive a syndicated loan of NT$5 billion (US$148 million) from nine local banks, industry sources indicated.

The fund injection is expected to help ProMOS redeem its euro convertible bond (ECB) by the February 14, 2009 deadline.

Under the cash-injection agreement reached February 2, ProMOS will collateralize its production equipment for the loan, according to the sources.

In addition, ProMOS will negotiate with its ECB holders for a 50% reduction in the price for redeeming the bonds, the source said, adding the company may need NT$11 billion to redeem the bonds without the price reduction.

ProMOS declined to comment on the sources' revelations. The company's stock price is currently under NT$2.

By: DocMemory
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