Hynix creditors drawing up counterproposal.

Byline: From Register-Guard and news service reports

Hynix Semiconductor Inc. creditors are preparing a counterproposal to an offer from Micron Technology Inc. after lenders to Hynix rejected an offer made by Idaho-based Micron last week.

``Each creditor bank explained the problems it had with the Micron proposal,'' Lee Youn Soo, a senior managing director of Korea Exchange Bank, said after a meeting with Salomon Smith Barney Ltd., Hynix's advisers. ``We will draw up a counterproposal based on these suggestions.''

Agreement from creditor banks, who have first claim on Hynix's assets after taking part in two multibillion-dollar bailouts last year, is needed for a transaction that would create the largest maker of computer-memory chips. Hynix needs more money from either its creditors or investors to keep up on debts that drove it to the edge of failure last year.

``Creditors will obviously want to make some major changes to Micron's proposal,'' said Eun Hyo Sang, a manager at Chohung Investment Trust Management Inc. in Seoul. ``A quick agreement does not seem likely.''

Micron proposed paying about $4 billion for Hynix's six memory-chip plants in Korea and its single memory-chip plant in Eugene, according to published reports.

Executives at 12 creditor institutions, including Chohung, Korea Exchange Bank, Hanvit Bank and Korea Investment Trust Management Co. met Monday afternoon to hear a presentation from Salomon Smith.

``We're not particularly happy with the price nor the terms of Micron's bid,'' said Yim Yeon Bin, chief creditor officer of Citibank NA's Seoul operations.

Citibank is one of five banks that agreed to continue their lending relationship with Hynix during its last bailout in October.

``We still have a long way to go'' before a deal, said Lee Jong Hwi, chief credit officer for Hanvit Bank. ``There may be disagreement among creditors themselves, especially between those who have collateralized loans and those who have uncollateralized loans.''

Opposition to an accord with Micron, the second-biggest maker of computer-memory chips, is also growing on other fronts.

Three members of a group of minority shareholders in the company tried to gain access to the meeting. The shareholders, carrying placards bearing the words ``survive alone, oppose the sale,'' said they represent about 700 other Hynix shareholders. The individuals were removed by Korea Exchange Bank security.

Micron asked Hynix creditors for $1.5 billion of support for a venture to be created once Micron takes over the Korean company's memory-chip business, according to local reports that creditors and Hynix declined to confirm.

Micron wants $1.1 billion for a Korean company it would create to be used for operating funds and investment in new equipment. It also asked creditors to buy $400 million of subordinated 30-year bonds with an annual 2 percent rate of interest, the report said, citing an unidentified creditor.

Hynix's board of directors, meanwhile, said it would agree to Micron's proposal only on the condition of full support from its creditors and a

guarantee that the remaining nonmemory chip division, with six plants in Korea, will be able to survive following the sale of the nonmemory chip division.

Hynix is still considering Micron's offer to buy its assets, it said in a statement, following a meeting of its directors.