MANHASSET, N.Y. Korean memory supplier Hynix Semiconductor will complete a workout program next week and regain management control from creditors, its main creditors said Friday in a Korea Times report.
Hynix's main creditors are Korea Exchange Bank (KEB), Chohung Bank, Woori Bank and Korea Development Bank, the report said.
In April, Hynix received creditor approval for a $1.5 billion debt refinancing plan
that will allow management to regain control of the company 20 months ahead of schedule. Hynix went into debt rescheduling in 2001 and was originally expected to be in the workout program until the end of 2006.
To end its 45-month-long court receivership, the chipmaker has raised $1.8 billion-- $1.3 billion through local fund-raising, including syndicated loans from a group of local financial institutions and $500 million through an overseas bond issuance, according to the report.
"Hynix will use the funds to repay $1.25 billion, some of its total $1.4 billion debts owed to the creditors, and use $550 million as working capital," Hynix spokesman Bang Min-ho was quoted as saying.
According to reports, the creditors have financed the troubled company with a total of $4.8 billion since 2001-- $2.9 billion in 2001 and $1.9 billion in 2002. Of the $4.8 billion, they have retrieved $3.4 billion from Hynix.