Seoul, Korea – Hynix Semiconductor Inc. may hold discussions with investors other than Micron Technology Inc., South Korean Minister of Finance and Economy Jeon Yun-churl said.
But if the chipmaker and its creditors fail to agree on new restructuring measures quickly, the government will let “laws and principles dictate” Hynix’s fate, Jeon said.
“If Hynix is deemed nonviable, its problems should be handled through a legal procedure,” Jeon said, without elaborating.
Creditors of Hynix said they were studying a plan to break the company into three units in order to facilitate the sale of its assets, reported Dow Jones.
The creditors, largely state-controlled Korean banks, are owed $5 billion by Hynix and said they are preparing to convert three trillion won ($2.3 billion) of the company’s bonds into a 75% equity stake by June 1.
The conversion would give the creditors’ management control of Hynix, from which they could place the memory chipmaker under court receivership if Hynix’s board of directors doesn’t agree to split up the company to bring about a sale.
The creditors said the company is seen being divided into three major businesses, including memory chip, non-memory chip, and LCD operations.