Hynix: Lenders eye $5 billion from Micron

Jan. 4, 2002 – Seoul, Korea – Lenders of Hynix Semiconductor Inc. are likely to insist on a major asset sale to Micron Technology.

The comment came after a newspaper said Micron plans to swap a stake in Micron worth $4 to $5 billion for the DRAM chip operations of rival Hynix, according to Reuters.

“I think creditors want that amount, which is just equivalent to their six trillion won ($4.61 billion) in exposure to us,” a Hynix official said.

Creditors have 8.64 trillion won ($6.63 billion) in exposure but that will be reduced to around six trillion won after a planned debt write-off.

Hynix was rescued last October by agreeing to a $7 billion bailout including converting debt into equity, debt rollovers, and debt write-offs.

An official at Hynix’s top creditor bank refused to comment on what the banks would demand from Hynix’s talks with Micron.

“We have no idea about the deal and can’t comment on it either,” said an official at Korea Exchange Bank.

Reuters reported that the Korea Daily News, quoting an unnamed creditor bank official, said Micron was expected to take over Hynix’s DRAM operations.

“Micron will establish a new entity after taking over Hynix’s DRAM unit and also invest in Hynix’s non-DRAM businesses.”


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