SK Hynix, GlobalFoundries May Try To Buy Elpida
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A group of Elpida Memory bondholders opposes Micron Technology's offer to buy the bankrupt Japanese chipmaker and has reached out to South Korea's SK hynix and U.S.-based GlobalFoundries to ready a potential alternative plan, a source with direct knowledge of the matter said, Reuters reported. SK hynix, which had dropped out during the second and final round of bidding for Elpida, is interested in the memory chipmaker's Taipei operations, while GlobalFoundries is interested in its Hiroshima operations, said the source, who asked not to be identified. Although the talks are still very preliminary, if SK hynix and GlobalFoundries agree to pay a price that satisfies bondholders, the group may file a rival restructuring plan for Elpida to the Tokyo district court in hopes of starting a new round of bidding, the person said. The submission of an alternative plan, which is highly unusual in bankruptcy cases in Japan, would require the approval of the court before it could be put to a vote of Elpida's debt holders, including its banks. "Bondholders don't want to see Elpida's estate lose value to Micron, so there are talks ongoing with other industry players for the possible sale of Elpida's businesses in separate transactions," said the person. "The two sales might just produce more than what could be achieved from a single sale to a single buyer." A Seoul-based spokesman for SK hynix said the company was not in talks with the debt holders. Read more.