MEMORY MAKER Micron is edging closer to completing its purchase of bankrupt Japanese DRAM maker Elpida after the Tokyo High Court dismissed creditors' appeals against Elpida's reorganisation plan.

Elpida, Japan's largest DRAM maker and supplier to firms such as Apple, filed for bankruptcy after years of falling demand for DRAM. Micron's bid to buy the company has been protested by some shareholders and creditors, however the American memory outfit edged closer to completing its purchase after the Tokyo High Court dismissed creditor appeals against the buyout, which is Elpida's reorganisation plan.

In February the Tokyo District Court approved the reorganisation plan following a vote of approval by Elpida's creditors. However a month later, a number of Elpida's unsecured creditors filed an appeal of that decision with Tokyo's High Court, which was dismissed yesterday.

Mark Durcan CEO of Micron said, "We applaud the Tokyo High Court's ruling. This is an important milestone on the way to Micron and Elpida joining to become the world's second largest memory provider with the strongest product portfolio in the industry."

Micron's bid to purchase Elpida is perhaps the only chance it will have to become a major player in the DRAM market. Samsung and SK Hynix dominate the DRAM market and, while Micron is a player, it doesn't have the volume to be a serious contender. However buying Elpida will give it the economies of scale it needs to compete with Samsung and SK Hynix.

Even with Tokyo's High Court ruling in favour of Elpida, Micron still needs to satisfy other conditions including those imposed by the US Bankruptcy Court for the District of Delaware before the deal can be completed.

By: Docmemory
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