Creditor Banks Provide $3.9 Billion For Bailout of Hynix Semiconductor

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Creditor Banks Provide $3.9 Billion For Bailout of Hynix Semiconductor

Creditor banks agreed Monday to provide Hynix Semiconductor with a 5.1 trillion won ($3.9 billion) bailout package on the condition that investment trust companies purchase 680 billion won of corporate bonds issued by the debt-ridden chipmaker.

Sixteen investment trust companies agreed tentatively to purchase 600 billion won of the bonds, which would be backed by state-run Seoul Guarantee Insurance Co. They pledged to buy the remaining 80 billion won without guarantees. Each firm's purchase plan will be disclosed Tuesday.

The 5.1 trillion won bailout by 17 creditors, including Korea Exchange Bank, includes the purchase of 1 trillion won of convertible bonds from Hynix Semiconductor, the extension of maturities on 1.92 trillion won of existing loans to as late as 2005 and new credit of 2.18 trillion won.

Hynix, formerly Hyundai Electronics Industries, will use the bond proceeds to pay outstanding loans. "As the bailout is set, road shows to invite foreign investment could begin by next week," an official at a creditor bank said.



by Kim Won-bae

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