Elpida Memory files for protection from creditors

News Wireless Global 27 FEB 2012
Elpida Memory files for protection from creditors
Elpida Memory has filed for court protection from its creditors, after failing to reach an agreement on restructuring its debt. At its last earnings report, the company issued a 'going concern' warning, saying it may not complete the negotiations with lenders before its next debt payment was due in April. The Tokyo District Court has now appointed an independent supervisor to lead the restructuring of the company. The filing for bankruptcy protection suggests the company was unable to reach an agreement on new investors or a takeover, after reports said it was in talks with rival chipmakers and the Japanese government. Elpida has suffered from the sharp fall in DRAM prices and high cost of investing in new products and manufacturing techniques. Its outstanding debt was last reported at JPY 448 billion as of March 2011.

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Mobile

Companies:

Sharp,  Elpida Memory

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Global

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Bankruptcy - Insolvency, Components, Devices, Shareholders & subsidiaries, Wholesale, Finance

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