Hynix CEO Kim Jong-kap |
By Kim Yoo-chul
Staff Reporter
Hynix Semiconductor received a positive signal from its creditors Friday on the provision of additional loans.
"Creditors of Hynix Semiconductor are seriously reviewing ways to offer financial assistance," Lee Dong-keun, a spokesman of the Ministry of Knowledge Economy, said in a press briefing at the government complex in Gwacheon, Gyeonggi Province.
"Due to high volatility in financial markets, it is highly unlikely that the No. 2 memory chipmaker will raise funds by issuing new shares," Lee added.
But he ruled out the possibility of  government-organized financial support for Hynix, as the move would violate World Trade Organization regulations.
Korea Exchange Bank (KEB), the main creditor for Hynix, has also said the company has asked for creditor-led assistance including new loans and a possible rights offering.
Hynix plans to raise a maximum of 1 trillion won, including 500 billion won in financial assistance from creditors to secure operational funds as the chip industry is reeling from sharp price falls amid a global economic slowdown, according to reports.
But Hynix spokeswoman Park Seong-ae declined to comment on the exact amount of the funding.
"Borrowing is one of our options. But nothing has been decided, including the timing or even the amount," Park said.
Earlier, last week, Hynix said it was considering raising new funds through various measures, including selling the company-owned property.
Hynix CEO Kim Jong-kap earlier said his company is not in a "cash-burning" situation requiring a fresh cash injection. Hynix had 1.2 trillion won in available cash flow at the end of the third quarter.
Shares of Hynix rose 3.56 percent to close at 7,560 won on South Korea's main bourse last week.
"Hynix's financial soundness is different from the collapsing Taiwanese DRAM chipmakers and German-based Qimonda. The global chip industry could rebound if a 10% market player files for bankruptcy," Lee said, adding it is highly unlikely Taiwanese chipmakers will "survive."
Analysts say Hynix will avoid a potential worst-case scenario of facing a financial squeeze, as the government clarified its intention to help.
Hynix posted its deepest quarterly loss in almost eight years in the third quarter, as prices for DRAM and NAND flash memory chips plunged over rising inventories and decreasing demand for electronics devices. DRAM chips are used in traditional PCs, while NAND chips are used in high-end portable gadgets such as MP3 players and car navigation systems.
Hynix graduated from a court receivership thanks to support from state-owned banks via several debt-to-equity swaps.
yckim@koreatimes.co.kr
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한국과 일본 국가부도위험 비슷해졌다
