Elpida bondholders offer $383 million loan in alternative plan: source
TOKYO (Reuters) - A group of bondholders is offering to provide a loan of 30 billion yen ($383 million) to failed chipmaker Elpida Memory as part of a restructuring plan, aiming to counter a proposed takeover by Micron Technology Inc, a source told Reuters.
The loan offer by the bond holders would be presented to the Tokyo District Court on Tuesday, the source familiar with the matter told Reuters.
A group of Elpida bondholders last month opposed a plan by U.S.-based Micron to acquire the bankrupt chipmaker for $750 million, arguing that it undervalues the company's assets.
Elpida, Japan's last remaining player in the dynamic random access memory (DRAM) market, filed for bankruptcy protection in February.
The bond holders group, which has not identified its members, believed Elpida was worth 300 billion, the source said.
Micron had agreed to acquire Elpida equity for 60 billion yen and pay creditors a total of 140 billion yen in annual instalments until 2019.
The group believed that Elpida could restructure itself on its own, but it will seek an alternative financial sponsor who would be willing to inject cash, the source said.
($1 = 78.3200 Japanese yen)