SAN FRANCISCO Feb 28 Memory chipmaker Micron
said the Tokyo district court issued an order approving
its acquisition of Japanese memory chipmaker Elpida after
creditors agreed to the plan.
Boise, Idaho-based Micron, which is losing money due to a
crumbling PC industry, wants to create larger economies of scale
and offered in July to buy Elpida for about $750 million in cash
and to pay creditors a total of $1.75 billion in annual
installments through 2019.
Elpida's creditors voted to approve the deal on Tuesday,
In October, the Tokyo court referred the reorganization plan
to creditors for approval after it dismissed a rival proposal
promoted by a group of bondholders led by hedge funds Linden
Advisors, Owl Creek Asset Management and Taconic Capital
Finalization of the approval order could come with four
weeks, presuming no appeal is filed, Micron said.
Micron and Elpida also need approval from the U.S.
Bankruptcy Court in Delaware, where the opposed bondholders have
shifted their fight.
Elpida, the last of Japan's dynamic random access memory
(DRAM) chipmakers, was driven into bankruptcy by falling chip
sales and foreign competition.
The acquisition would make Micron, which continues to expect
the transaction to close in the first half of 2013, the No. 2
global supplier of DRAM chips, behind Samsung Electronics