Friday, April 22, 2005
Memory supplier Hynix Semiconductor Inc. received creditor approval Thursday (April 21) for a $1.5 billion debt refinancing plan that will allow management to regain control of the company 20 months ahead of schedule, according to a report in the Korea Herald.
According to the report, the plan, presented last week by Hynix's main creditor Korea Exchange Bank, was approved by three-quarters of the lenders who own 81 percent of the chipmaker, the bank said in a statement.
Earlier this month, a Korea Times report said the Korea Exchange Bank was seeking written agreements from Hynix's other creditors that would return the beleaguered chipmaker back to independent control the first half of 2005.
The creditors plan to sell a 30 percent stake at home or overseas and subsequently sell the remaining 51 percent stake after 2007, the bank was quoted as saying in the report. Creditors had earlier agreed not to sell Hynix shares until the end of 2006, the report said.
Improving economic conditions have given Hynix a second life. In 2004 Hynix made a net profit of 1.7 trillion won (about $1.7 billion) on sales of 5.9 trillion won (about $5.9 billion), reversing a 1.7 trillion won loss in 2003.
The company still faces fallout from an ongoing price-fixing investigation in the dynamic random access memory (DRAM) industry, however. Hynix has reportedly pleaded guilty and will pay an $185 million fine for conspiring with other memory suppliers to fix the prices of DRAM chips.
In March, Hynix set aside 347 billion won ($338.7 million) in provisions related to the investigation.
By: DocMemory
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