Hynix, Debtor Group, Joins Negotiations Sale

Hynix Semi conductor, debtor group, publicly joined the sale negotiations with U.S. Micron Technology.

Thus, a sale negotiation for Hynix, which was depressed, seems to be energized.

However, as Micron is not willing to invest on non-semi conductor part of Hynix, prospect of negotiations is still opaque.

Korea Exchange Bank (KEB), main creditor bank of Hynix, stated that 6~7 concerned debtor group besides vice-president Lee Yon-Soo flew to the U.S. and will join Park Jeong-Seop, CEO of Hynix on 10th for sale negotiations.

Creditor Group`s (CG) joining in negotiations is analyzed as, CG follows, Korea government`s preference to `sale` rather than `exclusive survival` and Micron accepts partly revived negotiations of creditor group.

Main issue of negotiation is debt servicing of 1.5 billion dollar, new aid, and investment on non-semiconductor industry.

CG urges that interest of new fund aid should be in level with the market interest; however, Micron urges lower favorable interest than market interest.

CG stated that Micron should invest 20~25 percent shares and if necessary, it is willing to loan up to 200~~300 million dollars additionally, except 1.5 billion dollars, to Micron so that the rest of the corporation of Hynix (non-semiconductor) can have secure survival competitive power.

High ranking official of CG explained, “ however Micron adheres to take over only semi conductor industry still ” and “ this is the most difficult matter for agreement.”

Do-Young Kim nirvana1@donga.com