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Saturday, May 25, 2013

Elpida Seeks Court Approval For Sale To Micron

Per www.globalinsolvency.com:

Thu., May 23, 2013

Japan's Elpida Memory Inc asked U.S. Bankruptcy Court in Delaware on Wednesday to enforce its reorganization plan sale to Micron Technologies Inc, a final step to creating the world's second-largest maker of memory chips, Thomson Reuters News & Insight reported. Boise, Idaho-based Micron has been losing money as the market for personal computers steadily loses ground to smartphones and tablets. Acquiring Elpida will allow Micron to create greater economies of scale and will rank the company behind Samsung Electronics in the memory chip market. The majority of Elpida's secured and unsecured creditors approved the plan, which included the sale of assets to Micron for 60 billion yen ($582 million) in cash and another 140 billion yen ($1.36 billion) paid in annual installments until 2019. However, U.S. creditors led by hedge funds Linden Advisors, Owl Creek Asset Management and Taconic Capital Advisers have argued that Elpida is worth 300 billion yen ($2.91 billion). They have been actively fighting the plan, although their final appeal in Japan failed last week, leaving the U.S. courts as their remaining venue. Elpida still needs to have its reorganization plan recognized and enforced by a U.S. Bankruptcy Court to protect its U.S. assets from creditors under Chapter 15 of the bankruptcy code.

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