Creditors take control of Hynix

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.

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