SEOUL -- In an announcement that will anger Infineon, Micron, and others, creditors for Korea's Hynix Semiconductor Inc. here today approved another bailout package for the troubled chip maker, including a whopping $4.08 billion debt-relief plan, according to a report from the Associated Press.
Cash-strapped Hynix -- which has been bailed out several times in the past -- said it obtained from creditors a $1.58 billion debt-for-equity swap and a roll over of its $2.5 billion debt by 2006, according to the report.
Creditors holding 86.5% of Hynix's $6.25 billion debt owed to financial institutions voted for the package recommended by Deutsche Bank of Germany. The approval required 75% of the vote, according to the report.
Creditors of Hynix were set to meet today in order to vote on restructuring measures proposed by the main lender, Korea Exchange Bank. Some 114 creditor institutions are due to meet to vote on the restructuring plan, which includes a debt-for-equity swap worth about $1.58 billion and a 21:1 capital write-down plan.
The bailout will anger U.S. and other foreign competitors, which charge that Hynix and other Korean companies have benefited from unfair government subsidies. Micron Technology Inc. of the United States and Infineon Technologies AG of Germany filed complaints this year with the U.S. Commerce Department and the European Union, respectively, accusing their South Korean competitors of unfair assistance, according to the reports.