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Technology Stocks : Micron Only Forum -- Ignore unavailable to you. Want to Upgrade?

To: Ohkami who wrote (53567)	2/18/2002 8:55:35 AM
From: Ohkami	Respond to of 53903

So here we have the answer to my question re debt takeover by Micron: Looks like Micron's offer does NOT include taking over a large portion of the debt: >Creditors didn't say if Micron would assume any debt, but local >reports say Micron continues to resist assuming any of Hynix's >liabilities. In which case getting the Hynix 20% market share for just USD 4 billion would be a great bargain! See my previous post: <http://www.siliconinvestor.com/readmsg.aspx?msgid=17033194>. So what's the deal here? Micron acquires the majority of the assets but won't take over the majority of the liabilities? So the deal is supposed to be that the USD 4 billion raised by the remaining non-mem Hynix entity in the sale of its mem assets to Micron is used straight to pay back most of the USD 4.83 billion debt that this entity will still owe its creditors? For all practical purposes this seems to imply to me that most all of USD 3 billion creditors are swapping to equity will have to be written off. Well, let's just say I can understand that creditors are reluctant to approve such a bad deal. In this case maybe some sort of politically mandated Korean solution is called for...