Creditors take control of Hynix
Patriotic soccer fans were not the only South Koreans celebrating thisweek as the country's troubled semiconductor company Hynix reported thatcreditors had assumed control in a bid to sell the firm's assets.
Hynix is due to meet today to discuss a board reshuffle aimed at takingthe group forward.
On Monday the company’s creditors, which are collectively owed more than$6bn, finally acted on threats to convert bonds into shares and tookcontrol of the company.
A total of 13 banks converted $2.45bn (£1.68bn) worth of bonds, 4.23 billionshares equating to an 81% stake in the firm, leaving creditors in acomfortable majority position.
Alarm bells were raised after the company’s now displaced board rejecteda $3bn-plus bid from US-based chip maker Micron for a large deal of itsassets.
Analysts said that this move would re-ignite interest in the purchase ofthe company’s assets.
Hynix lost $3.9bn last year as the bottom fell out of the DRam chipmarket.