Hynix creditors extend bid deadline by 2 weeks

SEOUL, Nov. 2 (Yonhap) -- Creditors of Hynix Semiconductor Inc. said Monday that
they have extended a deadline for bids to take over the world's No. 2 memory
chipmaker at the request of the sole bidder, Hyosung Group.
Korea Exchange Bank (KEB), representing Hynix creditors, said the deadline will
be extended by two weeks, and Hyosung will be required to submit a preliminary
bid by Nov. 16.
Hyosung, a mid-sized South Korean conglomerate, said it has made the request
because it needs more time to pick an advisory firm, finalize its bid terms and
prepare for a subsequent due diligence.
After offering a preliminary bid, Hyosung will be required to conduct due
diligence before presenting a formal bid.
In September, Hyosung Corp., the flagship of Hyosung with businesses ranging from
chemicals to heavy machinery, solely offered a letter of intent for the purchase
of the creditors' 28.07-percent stake in Hynix.
Hyosung failed to meet an original mid-October deadline for a preliminary bid,
and Hynix creditors extended the deadline until the end of last month.
Hynix was put under joint supervision by creditors in October 2001 as a slump in
the global chip market plunged it into a credit crunch. KEB and other creditors
injected US$4.6 billion to bail out Hynix by swapping the chipmaker's debts for
equity.
Hynix ended its debt workout program in May 2005. Creditors have retained a
controlling stake since then, selling only a portion of what they held.
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