Reuters: Bankruptcy News: SK hynix, GlobalFoundries in talks with Elpida bondholders -source

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SK hynix, GlobalFoundries in talks with Elpida bondholders -source May 21st 2012, 10:09 TOKYO | Mon May 21, 2012 6:09am EDT TOKYO May 21 (Reuters) - A group of Elpida Memory bondholders opposes Micron Technology's offer to buy the bankrupt Japanese chipmaker as too low and has begun talks with South Korea's SK hynix and U.S.-based GlobalFoundries on an alternative plan, a source with direct knowledge of the matter said. SK hynix, which had dropped out during the second and final round of bidding for Elpida, is interested in buying the memory chipmaker's Taipei operations, while GlobalFoundries is interested in its Hiroshima operations, said the source, who asked not to be identified because the discussions are not public. Although the talks are still very preliminary, if SK hynix and GlobalFoundries agree to pay a price that satisfies bondholders, the group may file a rival restructuring plan for Elpida to the Tokyo district court in hopes of starting a new round of bidding, the person said. The submission of an alternative plan, which is highly unusual in bankruptcy cases in Japan, would require the approval of the court before it could be put to a vote of Elpida's debt holders, including its banks. U.S.-based Micron won the right to negotiate exclusively to buy Elpida, Japan's sole maker of dynamic random-access memory (DRAM) chips, with a bid that a source with direct knowledge of the deal said was worth 200 billion yen ($2.5 billion). Elpida, which is trying to stay in business after failing in February with 448 billion yen in liabilities, Japan's biggest bankruptcy ever by a manufacturer, chose Micron as its preferred investor early this month. TPG Capital LP and China's Hony Capital also presented a joint bid in the final round of bidding. The group of bondholders had said a Micron proposal reported in Japanese media before the final round of bidding worth 150 billion yen was too low. The bondholders did not identify themselves in a filing to a U.S. court. Link this Share this Digg this Email Reprints

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