Creditors, clients asked to drop 82.6% of Elpida claims in rehab

JIJI

Elpida Memory’s creditors and clients are being asked to surrender 82.6 percent of their claims on the failed chipmaker, a draft of its rehabilitation plan says.

According to the plan, ¥334 billion Elpida Memory Inc. owes in the form of bonds and receivables would be slashed by between 65.8 percent and 82.6 percent.

Payments to the holders would be completed by December 2019, with part of the ¥60 billion capital infusion Elpida is set to receive in June 2013 from U.S. chipmaker Micron Technology Inc. to be used to help finance the repayments.

The plan also proposes that Elpida fully repay ¥110 billion in loans it received from major creditor banks using a key plant in Higashihiroshima, Hiroshima Prefecture, as collateral.

The measures will slash the ¥443 billion in overall claims by ¥220 billion to ¥270 billion, the plan said.

The plan was submitted to the Tokyo District Court last week and the administrators want to get it approved by the end of the year.