Hynix submits Hyundai spin-off plan

Hynix Semiconductor wants to spin-off from Hyundai Group

SEOUL, South Korea -- South Korea's Hynix Semiconductor has submitted a plan to spin off from the parent Hyundai Group, the Korea Stock Exchange said Monday

Hynix, the world's third largest computer memory chipmaker, posted in a public notice to the stock exchange it had submitted the plan to the Fair Trade Commission.

The spin-off is part of the debt-laden chipmaker's restructuring plans aimed at refinancing and breaking off from the group to concentrate on semiconductors.

The Fair Trade Commission had earlier said it would revise laws to allow a speedy spin-off of the chipmaker from Hyundai.

Global depositary receipt is key to the plan

Hynix, formerly Hyundai Electronics Industries, is grappling with more than $4.4 billion (5.67 trillion won) in debt maturing this year and is relying on a refinancing plan to survive.

Key to the plan, which includes local banks and investment trusts buying bonds and extending loan maturities, is a global depositary receipt issue up to $1.5 billion.

The roadshow for the GDR issue kicked off in late May.

Shares of Hynix finished up 40 won at 4,330 won on Monday.

Reuters contributed to this report.

Note: Pages will open in a new browser window

External sites are not endorsed by CNN Interactive.