ID :
103428
Fri, 01/29/2010 - 15:24
Auther :
Shortlink :
https://www.oananews.org//node/103428
The shortlink copeid
Creditors draw no bidders for Hynix
(ATTN: AMENDS para 4; ADDS specific info in para 10; ADDS more info from para 11)
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 (LOI) 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. The
deadline for the LOI submission to buy Hynix was Friday.
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 have a meeting early February and discuss "measures to
stabilize the management and stakeholding," officials at the creditor bank said.
The officials indicated that the creditors could be still open to accepting LOIs
if investors are willing to invest in the Hynix stakes.
They are widely expected to sell the whole stake in blocks, as their attempt to
sell the world's second-largest memory chipmaker elicited little interest.
"If the attempt to sell the chipmaker fails, creditors will consider various
options including a block trade," Ryu Jae-han, head of state-run Korea Finance
Corp., which is also one of the creditors, said on Thursday, a day before the
deadline for the LOI submission.
ygkim@yna.co.kr
(END)
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 (LOI) 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. The
deadline for the LOI submission to buy Hynix was Friday.
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 have a meeting early February and discuss "measures to
stabilize the management and stakeholding," officials at the creditor bank said.
The officials indicated that the creditors could be still open to accepting LOIs
if investors are willing to invest in the Hynix stakes.
They are widely expected to sell the whole stake in blocks, as their attempt to
sell the world's second-largest memory chipmaker elicited little interest.
"If the attempt to sell the chipmaker fails, creditors will consider various
options including a block trade," Ryu Jae-han, head of state-run Korea Finance
Corp., which is also one of the creditors, said on Thursday, a day before the
deadline for the LOI submission.
ygkim@yna.co.kr
(END)
