Banks want higher price for Hynix.Byline: From Register-Guard and wire service reports
The fate of Hynix Semiconductor Inc.'s memory-chip plants, including the west Eugene factory, appears to hinge on Verb 1. hinge on - be contingent on; "The outcomes rides on the results of the election"; "Your grade will depends on your homework"
depend on, depend upon, devolve on, hinge upon, turn on, ride about $1 billion.
Hynix's creditor banks in South Korea This is a list of South Korean banks. Parenthesized number is bank number. Central Bank
Micron has offered only $3.2 billion for the seven plants, the newspaper said, citing an unidentified official at Hynix's creditor-appointed restructuring committee.
Executives from Hynix are in the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. for a fourth round of talks with Micron.
An official from Korean Exchange Bank, one of Hynix's largest creditors, is participating in the negotiations to ensure that creditors' opinions are conveyed because Hynix officials don't agree with creditors' demands, the newspaper report said.
Hynix is struggling under $6.6 billion in debt owed to creditor banks. Hynix has been rapidly selling assets to help pay down the debt. Hynix's key remaining assets are the seven memory-chip plants, plus six non-memory chip plants in Korea.
The higher the sales price Hynix is able to get for the seven memory-chip plants, the faster it will be able to pay off creditor banks, and the less Hynix debt those banks will have to write off.
Micron, meanwhile, has been pushing to get the Hynix plants for as low a price as possible. Micron started out in mid-January by offering just $2 billion, according to according to
1. As stated or indicated by; on the authority of: according to historians.
2. In keeping with: according to instructions.
3. Korean news reports.
Since then, computer chip prices have spiked upward, making the plants worth more and giving Hynix and its creditors leverage to demand a higher price.
At the Eugene plant, Hynix has just completed a $120 million upgrade of equipment in order to produce state-of-the-art 256-megabit dynamic random access memory Dynamic random access memory (DRAM) is a type of random access memory that stores each bit of data in a separate capacitor within an integrated circuit. Since real capacitors leak charge, the information eventually fades unless the capacitor charge is refreshed periodically. chips. Hynix won't disclose how many employees it now has at the plant. The company is asking the Eugene City Council to waive To intentionally or voluntarily relinquish a known right or engage in conduct warranting an inference that a right has been surrendered.
For example, an individual is said to waive the right to bring a tort action when he or she renounces the remedy provided by law for such property taxes on the new equipment for up to five years, a request the council is slated to consider on Jan. 30.