Reuters: Bankruptcy News: Elpida president: no decision on future despite quit reports

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Elpida president: no decision on future despite quit reports Aug 22nd 2012, 01:41 TOKYO | Tue Aug 21, 2012 9:41pm EDT TOKYO Aug 22 (Reuters) - The president of failed Elpida Memory Inc will step down after the chipmaker is taken over by U.S. rival Micron Technology Inc, Japanese media said on Wednesday, although the executive told Reuters he had not yet decided on his future. Elpida, Japan's last remaining dynamic random access memory (DRAM) chipmaker, has agreed to be bought by Micron after it was driven into bankruptcy by declining chip sales and tough overseas competitors. Yukio Sakamoto, who served as chief executive of Elpida until it filed for bankruptcy protection, rebuffed media reports of his departure, and said his future role in the company was not included in a restructuring plan submitted to a court on Tuesday. "Right now, I am pouring all my energy into restructuring this company," he said. Elpida submitted the Micron restructuring plan to the Tokyo District Court but has not elaborated on the content of the proposal, which needs to be approved by the court and backed by creditors to proceed. Under the plan, Micron would buy Elpida for about $750 million in cash and pay creditors a total of $1.75 billion in annual instalments through 2019. The Micron plan faces opposition from a group of bondholders, which says it holds about $1.2 billion in Elpida bonds and values Elpida at more than 300 billion yen ($3.78 billion), well above Micron's offer. Bondholders, who feel Sakamoto should bear some responsibility for the company's predicament, have also asked the court to make clear whether he should stay on at his post or resign. All of Elpida's stakeholders were entitled to know exactly what would happen to Sakamoto if the sale to Micron was implemented, the group said in a July filing. Link this Share this Digg this Email Reprints

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