Hynix, Certain Parts of Negotiation Agree on Principle

Creditors and Micron Technology have agreed on a good number of major pending issues in the process of Hynix’s bargaining.

“We’ve managed to make agreements on the principle-based negotiation (about major issues) with Micron.”, said vice-president of Korea Exchange Bank, Lee Yeon-Su, after returning from the negotiation on the 17th.

Lee also hinted on the possibility of Memorandum of Understanding (MOU) being signed in near future by saying, “It is not decided yet, whether to conclude MOU with Micron right away or to go through discussions with the creditors.”

According to the creditors, the two parties still have not reached agreement in certain issues, such as additional insolvency of surviving operations, contingent debts of new operations, and new-fund aids.

Creditors and Micron have come to mutual agreement for supporting surviving operations, stock-estimation that applies when proceeds from the sale are paid, and also for including investments of surviving operations in the total proceeds from the sale.

Lee said, “Investment-scale and conditions for surviving operations are agreed. But although agreement about the terms of interest by which creditors will support new operations is met, its amount is not confirmed yet.”

Creditors have withdrawn from negotiations, but lawyers and financial advisors of the two parties are proceeding with detailed negotiations.

The financial circle expects that details of MOU will be revealed in the creditors-conference and if opinions differ, major crediting bank and the largest creditor will lead the decision for MOU.

Sang-Chul Kim sckim007@donga.cosrkim@donga.comm