Hynix creditors consider capital reduction

Dec. 11, 2001 – Seoul, South Korea – Creditors of Hynix Semiconductor are considering a capital reduction for major shareholders, a creditor bank official told Reuters.

This comes as the world’s third-ranked memory chipmaker, which owes 8.65 trillion won ($6.79 billion) to banks and other financial institutions, is in alliance talks with Micron Technology.

“There is a growing consensus among creditors that it is only proper to seek the responsibility of major shareholders,” the official told Reuters on condition of anonymity.

He added creditors were not considering the move for small shareholders.

As of the end of September, Hyundai Merchant Marine Co. was Hynix’s largest shareholder with a 4.48% stake, followed by Hyundai Heavy Industries Co. with a 3.40% stake, according to Hynix.

Other large shareholders include Hyundai Group Chairman Chung Mong-hun with a 0.83% stake and Hyundai Elevator Co., which holds a 0.57% stake.

But another creditor bank official was cautious.

“But we have to wait and see whether the capital reduction would take place, since it faces various problems,” the official told Reuters on condition of anonymity.

The shareholders at the respective companies could oppose such a move, he added.

Micron completed preliminary diligence on Hynix, but has not yet offered specific proposals for strategic alliances, the South Korean chipmaker said.


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