Hynix “The Almost Struggled” Semiconductor today announced that the 114 creditors headed by the main lender, Korea Exchange Bank, approved the bailout package offered by the Deutsche Bank in late November. The decision means that the board of creditors admitted to perform another debt-for-equity swap worth about $1.58 (1.60) billion and also roll over about $2.5 billion by 2006.

Micron Technology and Infineon AG will definitely not like the decision of the board and will again apply to the court, trade commissions and other institutions accusing the Korean Government and Hynix itself of providing/receiving unfair subsidies and so on. From this moment it will not change anything dramatically since the larger part of the debt is now either returned with shares or rolled over for a long time. Furthermore, semiconductor’s industry is the fastest developing industry in South Korea, so, it can be understood easily why the government tries to help companies like Hynix Semiconductor to stay afloat.