SAN FRANCISCO—U.S.-based memory chip maker Micron Technology Inc. said Thursday (Feb. 28) the Tokyo District Court has approved Elpida Memory Inc.’s reorganization plan, bringing Micron one step closer to closing the $2.5 billion deal to acquire the bankrupt Japanese memory vendor.
Micron (Boise, Idaho) said Elpida’s reorganization plan calls for Micron to sponsor Elpida's reorganization, under which Elpida will become a wholly owned subsidiary of Micron. The Tokyo District Court's approval follows an Elpida creditor vote, concluded on Feb. 26, in which the creditors voted to approve the reorganization plan, Micron said.
"This is an important milestone that brings us a significant step closer to Micron and Elpida becoming the world's second largest memory company with the strongest product portfolio in the industry," said Micron CEO Mark Durcan, in a statement.
The closing of the deal remains subject to certain conditions, including finalization of the Tokyo District Court's approval order under Japanese bankruptcy rules. The finalization could occur as early as four weeks from now, assuming no appeal is filed, Micron said.
The U.S. Bankruptcy Court for the District of Delaware must also recognize Elpida's reorganization plan before the deal can be finalized, Micron said.