SEOUL -- Massively endebted Hynix Semiconductor Inc. wants to form a strategic partnership with three to four semiconductor firms in the United States and Europe, according to a report in the Korean Herald today (November 28, 2002). Hynix is also thinking of selling the flash memory part of its business to a European chipmaker, the report said.
As soon as restructuring plans, offered up by financial advisor Deutsche Bank AG earlier this week, are accepted by the company's creditors, Hynix intends to resume talks to form a strategic partnership, an un-named company official is reported as saying.
Deutsche Bank is advising a group of more than 100 creditors that have loaned in excess of $5 billion to Hynix. The management of Hynix, predominantly a maker of DRAMs, rejected a takeover offer from U.S. DRAM maker Micron Technology Inc. earlier this year.
Deutsche Back presented its draft restructuring plans to the creditors on Tuesday (November 26) and details have been emerging during the week. (see November 27 story).
According to reports Deutsche Bank has advised creditors to swap about $1.5 billion of their debt exposure with Hynix into equity in the company and roll over about $2.5 billion in maturing debt until 2006 to rescue the ailing chipmaker. The company is also being encouraged to sell off non-core businesses.
This latest report out of Korea suggests that earlier this year Hynix was already in talks either with a consortium of chipmakers or in talks with several companies separately.
"The strategic talks were brought to a halt early this year when Deutsche Bank began drawing up the restructuring plans. To put the management back on track, Hynix will make an all-out effort to find overseas business partners," the un-named official is quoted as saying.
According to the account Hynix is considering selling its flash memory unit, to a "European semiconductor firm". This could be STMicroelectronics, the only European chipmaker that is a significant player in the flash memory market.
The Korea Herald item could be found here when this story was first posted.