Deutsche Bank, the financial adviser of Hynix Semiconductor’s debtors, this week released its recommendations to the creditors on how to deal with the surviving DRAM maker. There was no need to be a prophet in order to predict that the adviser would offer the creditors to convert the debts into Hynix shares and then delay payment dates of the rest credits the cash-strapped chipmaker owes to its debtors.

According to The Korea Herald newspaper, on Tuesday, Deutsche Bank recommended that the lenders swap 1.9 trillion won ($1.585 billion) of debt for new shares and delay payment on 3 trillion won ($2.502 billion) to 2006, in order to keep the chipmaker afloat. In addition, creditors were advised to cut the interest rate from current 3.5% to 3.2%. The main creditors including Korea Exchange Bank, Woori Bank, Chohung Bank and Korea Development Bank are planning to settle all the financial questions by the 10th of December this year.

Deutsche Bank also pointed out the need to sell the non-memory-chip businesses (system integration circuit operations). The chipmaker last week also agreed to sell its flat-panel display business to China's BOE Technology Group for $380 million. The flash memory division is to be sold to a European company.

In addition to all the other measures, Deutsche Bank offers the management board to find foreign investors in order to upgrade the memory producing facilities and get Hynix back on the track of profitability as soon as possible.

See also:

- Hynix Will Never Stop Living This Way Until It Stops Living. Continues to Lose Money
- Hynix Sells its TFT-LCD Business Unit. Who Wants to Buy Hynix itself?
- Hynix: Between Samsung and Micron
- Micron Countervails Korean Government To Subsidy Samsung and Hynix
- Micron Speaks About DRAM Market. Doubts it Will Buy Hynix
- Hynix to Start Mass-Production of 512Mbit Memory Chips Using 0.10 Micron Technology by the End of the Year
- Hynix to Report Quarter Results: Troubles Just Chasing Them