SAN FRANCISCO—Japan's Elpida Memory Inc. said Tuesday (Aug. 21) it submitted a restructuring plan detailing its acquisition by Micron Technology Inc., bringing the $2.5 billion deal one step closer to reality, according to a report by the Reuters news service.
Micron confirmed in July it signed a definitive agreement to acquire and support Elpida for $2.5 billion. The deal includes $750 million to pay off a fraction of Elpida's debt to creditors at closing and another $1.75 billion to be paid in annual installment payments through 2019 to satisfy the claims of Elpida's creditors.
Elpida filed for bankruptcy protection in February.
Reuters also reported that a group of Elpida's unsecured debt holders continues to maintain that the deal undervalues Elpida. According to the report, the group, which says it hold about $1.2 billion of Elpida's $5.6 billion outstanding debt, submitted a plan last week to the Tokyo District Court that values Elpida at more than $3.78 billion.