Planned acquisition for bankrupt Japanese chipmaker, Elpida Memory Inc. appeared to move to completion last Friday. This was after Micron Technologies Inc. passed the key deadline without legal challenge.
According to court records, Elpida requested for a US Bankrupcty Court in Delaware to issue orders that will enable the firm to seek restructuring plans. US creditors were given until 4 p.m Friday to object to said request.
The restructuring plan is centered towards the proposed sale of Micron for US$2.1 billion. This will make Elpida the second biggest memory chip maker in the world.
Micron has been losing money after smartphones and tables gained popularity over the expense of personal computers. The company has considered that by acquiring Elpida, a creation of economies of scale through collaboration will make it rank next to Samsung Electronics.
The proceeds of the sale will be used to repay the company's creditors. US bondholders debated that Elpida was worth as much as JPY300 billion.
Bondholders exhausted legal challenges in Japan last May. The only place left for them to have bankruptcy recognized for the company was in the US Bankruptcy Court of Delaware. Elida sought recognition under Chapter 15 of the US Bankruptcy Code.
The deal was said to be actively resisted by creditors since last year and earlier this year. However, they faced a setback last January when Bankruptcy Judge Christopher Sontchi approved the deal between Micron and Elpida. Creditors warned that this will result in an inevitable merger.
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