(LEAD) Creditors draw no bidders for Hynix

(ATTN: ADDS more info from para 3)
SEOUL, Jan. 29 (Yonhap) -- Creditors of Hynix Semiconductor Inc. have drawn no
bidders for the world's second-largest memory chipmaker, prompting them to
consider other measures to sell their controlling stake in the company, the
company's main creditor said Friday.

The creditors put their 28 percent stake up for sale this month for the second
time after a previous attempt to sell the stake fell through. Hyosung Group, the
sole bidder for Hynix, dropped its bid on November 2009.
"As of 3:00 p.m. on Jan. 29, no company has sent a letter of intent to acquire
Hynix Semiconductor," said Korea Exchange Bank, the main creditor, in a released
statement.
Invitations for South Korean companies to submit bids went out Dec. 20. Letters
of intent to buy Hynix will be accepted until Jan. 29, KEB said.
Creditors even held a conference for investors, in a move to encourage investors
to purchase the world's second-largest chipmaker.
Shares of Hynix closed at 22,750 won during Friday's trading, down 3.60 percent
from the previous session.
Hynix was put under joint supervision by the creditors in October 2001, when it
faced a credit squeeze amid the semiconductor industry's faltering business
climate.
From 2001-2002, KEB and other creditors injected US$4.6 billion into Hynix to
bail it out by swapping the chipmaker's debts for stock.
Hynix ended its debt workout program in May 2005, after the company raised $1.25
billion to pay off its debt. The creditors have retained a controlling stake
since then, selling only a portion of what they held.
The creditors will come up with "measures to stabilize the management and
stakeholding as soon as possible," KEB said.
ygkim@yna.co.kr
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