News
 

Bookmark and Share

(0) 

The Tokyo District Court court has approved acquisition of insolvent Elpida Memory by rival Micron Technology. The court rejected alternative proposals by numerous creditors of the memory maker, who said that the price Micron would pay for the assets and patents of Elpida was too low.

“With respect to the proposed reorganization plan submitted separately by a certain bondholder, the Tokyo District Court made an order as of October 31, 2012 not to refer it to a resolution. Accordingly, only the proposed reorganization plan submitted by [Elpida] will be refer to a resolution in the reorganization proceedings,” a statement by Micron reads.

The court said that creditors or Elpida must vote on the reorganization plan, which involves acquisition of Elpida and Rexchip Semiconductor by Micron, by February 26, 2012.

Under the agreement Elpida and Micron signed earlier this year, the latter will pay creditors of the former ¥200 billion (approximately $2.5 billion) total consideration, of which ¥60 billion (~$750 million) are to be paid in cash at closing, whereas, another ¥140 billion (~$1.75 billion) will be paid in future annual installment payments through 2019 from cash flow generated from Micron’s payment for foundry services provided by Elpida, as a Micron subsidiary.

 Certain creditors of Elpida said that not only $2.5 billion was too low price for Elpida, considering the fact that they will only get about $750 million for the company's equity, whereas 24% share of Rexchip Semiconductor will be acquired by Micron for $334 million, but the annual installment payments are subject to certain conditions and may never be paid.

Micron applauded the Tokyo District Court's order approving the submission of Elpida Memory's reorganization plan to creditors as part of Elpida's corporate reorganization proceedings.

"Micron is pleased with the Tokyo District Court's order to submit Elpida's plan of reorganization to creditors for approval. This is an important step forward in the reorganization process. The combination of Micron and Elpida will create the world's second largest memory company with the strongest product portfolio in the industry," said Mark Durcan, chief executive officer of Micron.

Tags: Micron, Elpida, DRAM, Business

Discussion

Comments currently: 0

Add your Comment




Related news

Latest News

Monday, April 14, 2014

8:23 am | Microsoft Vows to Release Xbox 360 Emulator for Xbox One. Microsoft Xbox One May Gain Compatibility with Xbox 360 Games

Tuesday, April 1, 2014

10:39 am | Microsoft Reveals Kinect for Windows v2 Hardware. Launch of New Kinect for Windows Approaches

Tuesday, March 25, 2014

1:57 pm | Facebook to Acquire Virtual Reality Pioneer, Oculus VR. Facebook Considers Virtual Reality as Next-Gen Social Platform

1:35 pm | Intel Acquires Maker of Wearable Computing Devices. Basis Science Becomes Fully-Owned Subsidiary of Intel

Monday, March 24, 2014

10:53 pm | Global UHD TV Shipments Total 1.6 Million Units in 2013 – Analysts. China Ahead of the Whole World with 4K TV Adoption

10:40 pm | Crytek to Adopt AMD Mantle Mantle API for CryEngine. Leading Game Developer Adopts AMD Mantle

9:08 pm | Microsoft Unleashes DirectX 12: One API for PCs, Mobile Gadgets and Xbox One. Microsoft Promises Increased Performance, New Features with DirectX 12

3:33 pm | PowerVR Wizard: Imagination Reveals World’s First Ray-Tracing GPU IP for Mobile Devices. Imagination Technologies Brings Ray-Tracing, Hybrid Rendering Modes to Smartphones and Tablets

2:00 pm | Nokia Now Expects to Close Deal with Microsoft in Q2. Sale of Nokia’s Division to Close Next Month