Minority Shareholders Applied for Injunction of the Debt-equity Swap of Hynix

Minority shareholders of Hynix Semiconductor decided to apply for an injunction to block bank creditors from making debt-equity swap. The `Association for the survival of Hynix` on the 19th said, “it is the pursuit for only the interest of creditors that creditors make a swap of convertible bonds amounting 3 trillion won at 1,000 won per a bond. ” The association side pointed, “creditors are promoting debt-equity swap at market price after dropping stock price far lower than face value of 5,000 won by announcing their will for capital reduction and overseas sale. ”

However, major creditor bank of Hynix, Foreign Exchange Bank said, “the debt-equity swap by creditors is the decision through legal procedure. We will ask Korea Securities Depository for debt-equity swap on June 1st as planned. ” The conversion of 3 trillion won of CB of Hynix whose capital is 5 trillion won to capital at 1,000 won or one fifth of the face value will increase the capital 15 trillion won totaling 20 trillion won, and creditors will secure 75 percent stake.

Seung-Ryun Kim srkim@donga.com