SEOUL --- Creditors of massively endebted Hynix Semiconductor Inc., have been advised to sell the company's Eugene, Oregon, wafer fab, according to a Dow Jones Business News report today (November 27, 2002). The sell-off would be part of bailout proposal from Deutsche Bank AG, the creditors' financial adviser.
A Hynix representative was reported as saying that the Eugene plant makes up about 10% of the company's total DRAM chip output, but creditors might wish to wait until 2004 before making the sale.
Korea Exchange Bank is the leading creditor in a list of some 117 creditors who have put up more than $5 billion in loans, according to the report. They are under pressure to come up with a debt-restructuring plan for Hynix by early December.
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 (see November 26 story).