Hynix creditors meet to ponder $759m loan request
May demand joint control in return
Hynix's creditors will meet today to discuss whether to offer the struggling memory maker a further KRW1 trillion ($758.495 million) on credit.
Also on the agenda is discussion of a plan to place creditors at Hynix's helm alongside its current management.
Hynix's latest debt management plan calls for a loan of KRW500 billion, however the effect of the events of 11 September on the world chip market forced the company to double the figure to one trillion won.
Last month its creditors agreed to an exchange of three trillion won of existing Hynix debt into bonds convertible to Hynix stock at some point in the future. Rival memory maker Micron, for one, isn't happy about the move, which it believes amounts to unlawful government support. Without the deal, Hynix would collapse, says Micron, and it's probably right.
But despite agreeing to the debt-for-stock plan, creditors seemed wary of extending Hynix's credit line even further. If they do offer the memory maker further funds, they are now likely to demand a quid pro quo: a say in how Hynix is run. Given how well Hynix's own people have been doing it, that's perhaps not a bad thing. ®