Major creditors of Elpida Memory Inc. have called for the disclosure of key information on the failed chipmaker’s rehabilitation, such as how its sponsor was picked, sources said Saturday.
The 10 creditors demanded that Elpida’s administrator disclose the information because they are expected to be asked to give up on huge loan claims but have no clue on how to decide whether to accept the debt waiver requests, the sources said.
The creditors made the demand through a lien holders’ committee they formed, which also asked the Tokyo District Court to order the administrator to release the information, they said. Under the corporate rehabilitation law, the committee has the right to express its opinions to the administrator. The committee found that it was necessary to have access to as much information as the administrator does in order to bail out Elpida.
In the wake of its collapse in February, Elpida picked major U.S. semiconductor maker Micron Technology Inc. as its rehabilitation sponsor on July 2. Of some ¥420 billion in debt Elpida owes to its creditors, the company has proposed that up to ¥140 billion be repaid in installments over a period of seven years.
The committee noted that no information has yet been made available to the creditors to evaluate collateral values that affect the size of Elpida’s debt repayments. If the administrator keeps concealing the information, the situation will “trigger a conflict between the creditors and Elpida and result in a delay in the rehabilitation process,” the committee said.