Hynix creditors to cede control early - report
Management may take charge this year
Hynix may soon regain control of its destiny from its creditor banks. Originally due to take charge in the second half of 2006, Hynix's chiefs could get to run things before the end of June.
So claims a Korea Times report, citing an official of the Korea Exchange Bank, on the Hynix's creditors. The KEB is believed to be approaching its fellow creditors, seeking approval for its plan to move Hynix out of "bank receivership".
The banks took charge of Hynix in 2001 under the terms of their refinancing package. That funding not only prevented the memory maker from going to the wall, but spurred complaints from rival vendors to their respective governments. Infineon, Micron and others alleged Hynix was being unlawfully propped up by the South Korean government.
Earlier this year, the World Trade Organisation ruled that EU and US judgements that the Hynix rescue package broke WTO regulations were incorrect, and that these authorities were wrong to impose punitive import duties on Hynix memory products.
The refinancing package saw Hynix's creditors provide a further KRW1.5tr ($1.5bn at today's exchange rates, then $1.17bn) to keep the memory maker afloat. Today, Hynix owes its creditors around KRW1.6tr ($1.6bn). ®
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