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

The essential guide to IT transformation

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

Boost IT visibility and business value

More from The Register

next story
6 Obvious Reasons Why Facebook Will Ban This Article (Thank God)
Clampdown on clickbait ... and El Reg is OK with this
No, thank you. I will not code for the Caliphate
Some assignments, even the Bongster decline must
Fast And Furious 6 cammer thrown in slammer for nearly three years
Man jailed for dodgy cinema recording of Hollywood movie
Caught red-handed: UK cops, PCSOs, specials behaving badly… on social media
No Mr Fuzz, don't ask a crime victim to be your pal on Facebook
Barnes & Noble: Swallow a Samsung Nook tablet, please ... pretty please
Novelslab finally on sale with ($199 - $20) price tag
Ballmer leaves Microsoft board to spend more time with his b-balls
From Clippy to Clippers: Hi, I see you're running an NBA team now ...
Video of US journalist 'beheading' pulled from social media
Yanked footage featured British-accented attacker and US journo James Foley
Assange™: Hey world, I'M STILL HERE, ignore that Snowden guy
Press conference: ME ME ME ME ME ME ME (cont'd pg 94)
Call of Duty daddy considers launching own movie studio
Activision Blizzard might like quality control of a CoD film
prev story

Whitepapers

Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Endpoint data privacy in the cloud is easier than you think
Innovations in encryption and storage resolve issues of data privacy and key requirements for companies to look for in a solution.
Scale data protection with your virtual environment
To scale at the rate of virtualization growth, data protection solutions need to adopt new capabilities and simplify current features.
Boost IT visibility and business value
How building a great service catalog relieves pressure points and demonstrates the value of IT service management.
High Performance for All
While HPC is not new, it has traditionally been seen as a specialist area – is it now geared up to meet more mainstream requirements?