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Sale of Hynix to Take Over One Month

Posted March. 19, 2002 08:57,   


It is likely to take at least one month to exchange Memorandum of Understanding (MOU), though the negotiation of sale of Hynix Semiconductor Inc. considerably proceeded.

According creditors of Hynix on the 18th, Hynix and Micron have differences on the scope of compensation for post loss of remaining Hynix affiliates and the deposit volume in temporary account of Micron shares.

A high official of creditors said, “both parties fundamentally agreed with pending issues, but it is premature to announce whether they reached final agreement on sale, as the rest conditions are very important, too. ”

The official added, “the issue of the compensation for post loss, which is one of unsettled issues, has some 20 provisions to be agreed. Hence it may take over one month to reach exchange of MOU. ”

The conclusive cause, which broke off the negotiation for the sale of Hyundai Investment Trust between the government and AIG, was the problem of compensation for post loss.

Micron claims that domestic creditors should be 100 percent responsible for the losses that Hynix remaining factories should compensate for in case of tax, patent disputes and lawsuits.

Creditors, on the contrary, are protesting that they would be partly responsible for certain objects and period.

For the deposit volume for new shares of Micron, additional talks are required as Micron is insisting 25 percent of total shares for 2 years while creditors 10 percent.

Do-Young Kim nirvana1@donga.com