LONDON – Struggling DRAM maker ProMOS Technologies Inc. has agreed a deal in principle with more than 30 creditor banks to swap half of its NT$57 billion (about $2 billion) of debt for equity, according to a Taiwan Economic News report.
Two other Taiwan DRAM companies – Inotera and Nanya – are also struggling, but ProMOS appears to have a bail-out plan similar to that which saved Hynix Semiconductor from failing in 2002.
The bail-out includes: a plan to increase ProMOS capitalization to NT$15 billion (about $520 million); slashing the company's loan interest to 0.1 percent from 3.5 percent per annum; and a promise to set up a new management team next year, the report said.
However, the bail-out plan is subject to approval of each bank's board of directors. This could come through early in August, the report said.