Rexchip, a joint venture of Elpida and Taiwan's Powerchip Technology Corp., said the repayment estimate came after the Tokyo District Court approved the Japanese dynamic random access memory (DRAM) maker's financial restructuring plan earlier this month.
Rexchip now expects to recover about 1.8 billion Japanese yen (US$22.44 million) of the 10.47 billion yuan Elpida still owes it for previous contract DRAM manufacturing services.
Under the court-approved financial restructuring plan Elpida will repay only 17.4 percent of its debts to creditors such as Rexchip that have no collateral guaranteeing repayment. The payment will be made over a seven-year period.
At the same time, Elpida will repay 100 percent of the debts it owes to creditors that have sufficient collateral to protect their rights.
Rexchip said the company has booked provisions covering all of Elpida's debts, and any amount repaid in the future will be treated as non-operating income.
Elpida filed for bankruptcy protection in Tokyo in February because of massive losses suffered at a time when the global DRAM business is facing a down cycle amid a supply glut.
Shares of Rexchip, another victim of the sluggish DRAM market, have been delisted from the emerging stock market since Nov. 3 after Cathay Securities and Grand Cathay Securities resigned from their posts as the chip maker's advisory securities firms.
The GreTai Securities Market, which operates the emerging stock market, said the departure reflected concerns over Rexchip's financial difficulties amid falling demand for DRAMs.
Rexchip has a NT$2.6 billion loan (US$88.74 million) due Nov. 20 but has only about NT$500 million in cash on hand.
The DRAM company is in talks with its bank creditors hoping to secure their agreement to roll over part of its loans.
(By Jackson Chang and Frances Huang)
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Source: http://www.findata.co.nz/News/17817995/Rexchip_expects_Elpida_to_repay_18_billion_yen_in_debt.htm
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