Hynix creditors deny capital reduction rumor

(ATTN: UPDATES with details from Hynix's statement at bottom)
SEOUL, Dec. 12 (Yonhap) -- Creditors of Hynix Semiconductor Inc., the world's second-largest computer memory-chip maker, denied Friday a rumor that they were planning to reduce the company's capital.
Controlling shareholders of Hynix haven't discussed such plans and there is no
need for Hynix to cut its capital, main creditor Korea Exchange Bank (KEB) said
in a statement.
The company's shares rose 1.84 percent as of 10:55 a.m. Shares of Hynix plunged
11.7 percent to end at 6,520 won (US$4.8) on the Seoul bourse on Wednesday on the
rumor of a possible capital cut.
Creditors of Hynix are in discussions to provide 800 billion won in financial
support, the statement said.
Hynix is projected to report a record operating loss in the fourth quarter as a
global glut is driving down prices amid the global recession, according to market
watchers.
In a separate statement, Hynix said it decided to request an investigation by
prosecutors into the source of the "groundless and malicious rumor" as it could
have a "seriously adverse effect" on the company's stocks and ratings.
odissy@yna.co.kr
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