The will-they, won't they saga of the memory-operations marriage between Hynix Semiconductor and Micron Technology took another turn after Hynix decided that, while selling its memory operations was in theory desirable, it would leave the viability of the rest of its business uncertain.
In a non-binding agreement, signed on 19th April, 2002, Micron said it would pay 108.6 million shares for the business.
But Hynix has concluded that while selling the memory operations was a "meaningful option in and of itself", it would leave the future of its remaining operations, into which Micron had said it would invest $200m for a 15% stake, in question.
Hynix said it was in a position to confirm Micron's worries that the plan placed too much liability onto the remaining company; restricted the sales of the stock of the remaining company as a collateral security; and overestimated the revenue and cash flow of the remaining company.
It said: "There are too many problems with the creditors' post-merger restructuring plan for the remaining company. The plan overestimates the value of the Micron stock to be paid for the sale of Hynix's memory business; unrealistically presumes the size and timing of contingent liabilities; and is too optimistic in its estimate of the cash flow of the remaining company."