TOKYO, Sept 14 (Reuters) - A Japanese court has delayed its ruling on two competing plans to restructure failed chipmaker Elpida Memory Inc, a source with direct knowledge of the matter said.
Elpida filed for bankruptcy in February in the largest corporate failure among Japanese manufacturers. Saddled with 482 billion yen ($6.22 billion) in liabilities, Elpida has agreed to be bought by U.S. rival Micron Technology Inc.
A group of Elpida bondholders last month submitted a restructuring plan to the Tokyo District Court after disagreeing with a proposal drawn up by Elpida's court-appointed administrator which endorses the deal with Micron.
A committee set up by the court to examine the two plans is expected to make a recommendation by Sept. 28, the source said, declining to be identified because the person is not authorised to speak to the media. The court will make a final decision based on the recommendation.
An official at the court declined to comment.
Under the plan crafted by Elpida's administrator, Micron would inject 60 billion yen into the failed chipmaker and pay creditors a total of 140 billion yen in annual instalments through 2019.
But the bondholders said Elpida is worth at least 300 billion yen. The bondholders consist of about 20 institutions including Taconic Capital Advisors, Linden Advisors and Owl Creek Asset Management.
The group, which said they hold about 100 billion yen in Elpida bonds, proposed that the chipmaker distribute its shares to creditors instead. It also offered to lend Elpida 30 billion yen to help pay its debts.
The court may endorse one of the plans or both. All of Elpida's creditors would get to vote in October.