Elpida bondholders to submit competing reconstruction plan: Nikkei

Reuters News
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Posted: Aug 13, 2012 3:03 PM
Elpida bondholders to submit competing reconstruction plan: Nikkei

(Reuters) - Elpida Memory Inc's bondholders plan to float their own business reconstruction plan for the bankrupt Japanese chipmaker as early as Tuesday, the Nikkei business daily reported.

A group of bondholders had in July said they would vote against Micron Technology Inc's plan to acquire Elpida for about $750 million, saying it undervalued the company's assets.

Overseas hedge funds and other bondholders will present the plan to the Tokyo District Court advocating a sponsor for Elpida other than Micron, the business daily said.

The bondholders, who contend Micron's buyout plan lacks transparency, will push for adoption of their business rebuilding plan by drumming up support from creditors that are also protesting Micron's plans for Elpida, Nikkei said.

(Reporting by Sagarika Jaisinghani in Bangalore; Editing by Supriya Kurane)