Feeds

Hynix creditors fail to agree on loan provider

Memory maker should be bailed out - but someone else should do it

  • alert
  • submit to reddit

Intelligent flash storage arrays

Hynix's creditors may have agreed to loan the much-troubled memory maker fresh funds to keep it from collapsing, but they can't come to a consensus on which of them will cough up the cash.

"There is still some disagreement among creditors on the terms of the proposal,'' said Thomas Fallows, vice president of the Korean branch of Citibank, after a meeting of Hynix's creditors yesterday. "I'm not sure that there will be a definitive agreement,'' he added, referring to a second meeting planned for Friday.

Hynix's biggest creditor, the state-run Korea Development Bank, has already said it won't extend the company's credit line any further. Other creditors seem equally reticent, with the Korea Exchange Bank suggesting yesterday that Hynix's second largest creditor, Hanvit Bank, join it in picking up the tab, according to a Bloomberg report.

Last week Hanvit governor Lee Deok-hoon said it will extend the memory maker's credit line. He said keeping Hynix up and running is more in the bank's interest than allowing it to collapse. No wonder, then, that KEB reckons it should put its money where its mouth is.

However, Hanvit told its fellow creditors it wants others to share the burden too.

They seem unwilling to do so. "We are not comfortable with having to provide the new money,'' said Lee Deuk Young, deputy manager of the corporate restructuring office at Kookmin Bank, yesterday.

The proposed bailout plan centres on a 500 billion won loan. Issuing one trillion won of new shares and selling three trillion won of stock-convertible bonds to creditors is also part of the scheme Hynix has offered to ensure it has sufficient funds to continue to operate. It also wants to extend its repayment of 2.1 trillion won worth of loans it has already taken out. ®

Related Stories

Hynix rids itself of LCD plant for $650m
Creditors agree to 1500bn won Hynix rescue plan
Hynix's biggest creditor nixes bailout plan
Hynix will get no help from Korean govt - Deputy PM

Remote control for virtualized desktops

More from The Register

next story
I'll be back (and forward): Hollywood's time travel tribulations
Quick, call the Time Cops to sort out this paradox!
Megaupload overlord Kim Dotcom: The US HAS RADICALISED ME!
Now my lawyers have bailed 'cos I'm 'OFFICIALLY' BROKE
MI6 oversight report on Lee Rigby murder: US web giants offer 'safe haven for TERRORISM'
PM urged to 'prioritise issue' after Facebook hindsight find
BT said to have pulled patent-infringing boxes from DSL network
Take your license demand and stick it in your ASSIA
Right to be forgotten should apply to Google.com too: EU
And hey - no need to tell the website you've de-listed. That'll make it easier ...
Assange™ slumps back on Ecuador's sofa after detention appeal binned
Swedish court rules there's 'great risk' WikiLeaker will dodge prosecution
prev story

Whitepapers

Designing and building an open ITOA architecture
Learn about a new IT data taxonomy defined by the four data sources of IT visibility: wire, machine, agent, and synthetic data sets.
5 critical considerations for enterprise cloud backup
Key considerations when evaluating cloud backup solutions to ensure adequate protection security and availability of enterprise data.
Getting started with customer-focused identity management
Learn why identity is a fundamental requirement to digital growth, and how without it there is no way to identify and engage customers in a meaningful way.
Reg Reader Research: SaaS based Email and Office Productivity Tools
Read this Reg reader report which provides advice and guidance for SMBs towards the use of SaaS based email and Office productivity tools.
Business security measures using SSL
Examines the major types of threats to information security that businesses face today and the techniques for mitigating those threats.