| TOKYO, Sept 14
TOKYO, Sept 14 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
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.