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Preview / WEEK OF NOV. 25 -- DEC. 1

Hynix Creditors to Meet on Rescue Measures

November 25, 2002|From Bloomberg News

Korea Exchange Bank and other major Hynix Semiconductor Inc. creditors meet today to discuss possible rescue measures for the world's third-largest computer memory-chip maker.

Lenders, including Citibank's Seoul branch, will discuss recommendations from Deutsche Bank, which was hired to advise them on what to do with the ailing chip maker.

Deutsche Bank has recommended that creditors swap $1.5 billion of debt into stock and delay payment on remaining debt to keep the chip maker in business, Maeil Business Newspaper reported.

Four companies control 80% of the global market for dynamic random access memory, or DRAM, chips used in personal computers and other devices.

Analysts estimate that Hynix controls about 20% of the market, whereas Micron Technology Inc. and Samsung Electronics Corp. each have a 25% share.

The chip makers have been ailing with the global drop in sales of PCs.

The Justice Department in June launched an antitrust investigation into whether semiconductor manufacturers manipulated prices in the $11.2-billion memory-chip market.

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