Chip-maker Elpida to form restructuring plan by April

Kyodo

Elpida Memory Inc., which filed for bankruptcy protection earlier this week, plans to craft a restructuring plan by April, according to participants of a briefing session for the company’s creditors.

In the meeting Wednesday attended by President Yukio Sakamoto, Elpida said it will choose a sponsor soon to help rebuild Japan’s sole manufacturer of dynamic random-access memory chips used in personal computers and other devices.

Around 800 people from Elpida’s creditor banks and business partner companies attended the Tokyo gathering.

According to the participants, Sakamoto apologized for the failure while informing them that several companies have offered to help Elpida.

Though Sakamoto declined to name the companies, citing confidentiality, they apparently include U.S. chip-maker Micron Technology Inc. and Taiwan’s Nanya Technology Corp.

“I am concerned about whether the company can decide on a sponsor,” one participant said.

Among creditor banks, the Development Bank of Japan has said it has extended loans totaling ¥46.1 billion that could become unrecoverable.