Troubled Hynix to spin off LCD unit

Debt-laden Hynix will spin off its LCD operation to focus on its semiconductor business

By Staff and wire reports

SEOUL, Korea -- South Korea's troubled Hynix Semiconductor said its board members have approved the spin-off of its Liquid Crystal Display (LCD) operation.

Hynix, one of the world's largest memory chip suppliers, is saddled with $4.37 billion in debt maturing this year.

Hynix will create a new independent corporation for the LCD business by June 1 and transfer all sales rights to the new corporation by June 8, the company said in a statement.

"The spin-off further allows Hynix to focus on its semiconductor business," it said.

Creditors of the cash-strapped chipmaker recently asked a state-run credit guarantor to provide a 70 percent payment guaranteed for $774.2 million of convertible bonds.

But the government has voiced unwillingness to ask state-run credit firms to guarantee Hynix's debt, possibly out of concern about drawing criticism from the U.S. Trade Representative.

The creditors then turned to trust investment companies to help shoulder the burden, but the extent of their involvement is still under discussion.

Hynix shares closed up 190 won at 3,655 on Monday.

Reuters contributed to this report.

Hynix creditors may meet today on bailout
April 30, 2001

Hynix

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