Hynix selling bonds to pay debt

July 29, 2002 – Seoul, Korea – Hynix Semiconductor Inc., which missed a bond repayment last week, said it would meet July obligations by issuing 127.7 billion won ($107.3 million) in bonds.

The chipmaker has struggled since losing $3.9 billion last year after computer memory chip prices fell to record lows, reported Reuters. It owes creditors more than $2 billion and faces a possible split-up as lenders weigh options for recollecting their money.

A plan for creditors is due next week from advisers Morgan Stanley Dean Witter and Deutsche Bank.

“Debt rescheduling is under way,” Hynix said. “The bonds were issued to cover debt maturing in July.”

A planned bond issuance of 8.5 billion won on July 31 would bring the month’s tally to 127.7 billion won, Hynix said.


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