BusinessBusiness RecoveryCreditors take control of Hynix

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.

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