SEOUL, South Korea, Nov. 6 /PRNewswire/ -- MagnaChip Semiconductor
("MagnaChip" or "the Company") announced that its Second Amended Plan of
Reorganization confirmed by the United States Bankruptcy Court for the
District of Delaware on September 25, 2009 (the "Plan"), will become effective
on Monday, November 9, marking MagnaChip's emergence from voluntary Chapter 11
restructuring.
The Plan was overwhelmingly supported by the Company's creditors. Under the
Plan, Avenue Capital Management II, L.P. ("Avenue Capital") has become the
controlling shareholder of MagnaChip, and other secured and unsecured
creditors have received minority equity stakes. MagnaChip has reduced its
long-term debt to only $62 million, leaving the Company's balance sheet nearly
net debt free with over $50 million of cash on the balance sheet.
Sang Park, CEO of MagnaChip Semiconductor said, "I am very happy to announce
that MagnaChip has overcome its difficulties and is now financially robust and
ready to continue executing our growth plan. We greatly appreciate the solid
support of our creditors and especially our customers, suppliers, and business
partners. The quick completion of our financial restructuring is a testament
to our employees and the strength of our business."
About Avenue Capital Group
Avenue Capital Group manages assets valued at approximately $19.2 billion*.
Avenue is a leading global investment management firm specializing in
distressed and undervalued public and private debt and equity securities of
undervalued and distressed companies. Founded in 1995, Avenue is
headquartered in New York, with offices in London, Munich, Luxembourg, and
nine offices throughout Asia.
About MagnaChip Semiconductor
Headquartered in South Korea, MagnaChip Semiconductor is a leading, Asia-based
designer and manufacturer of analog and mixed-signal semiconductor products
for high volume consumer applications. The Company has a broad range of
analog and mixed-signal semiconductor technology and intellectual property,
supported by its 30-year operating history, large portfolio of registered and
pending patents and extensive engineering and manufacturing process expertise.
For more information, please visit www.magnachip.com.
* Estimated AUM as of September 30, 2009.
Contact: Brent Rowe
SVP and General Manager of Worldwide Sales
Tel: +1 (408) 213-2428
brent.rowe@magnachip.com
SOURCE MagnaChip Semiconductor
Brent Rowe, SVP and General Manager of Worldwide Sales, +1-408-213-2428,
brent.rowe@magnachip.com
