Dramurai on brink of cash meltdown

ENGLISH LANGUAGE Korean newspaper The Korea Herald is reporting that creditors of Hynix - formed from the merger of LG Semi and Hyundai Semi, are drawing up plans for its future.

That follows the continued meltdown of memory prices, with the same newspaper reporting that Hynix' suspension of production has had little or no effect on prices in the marketplace.

Salomon Smith Barney is currently drawing up a contingency plan for Hynix, with cash flow problems plagueing the huge Dramurai.

Hynix may have to sell its LCD business to raise money. The outfit will exit from its parent company officially tomorrow.

Efforts Hynix has already made, such as mothballing its Oregon plant in Eugene, and other measures, have failed to stem the crisis. Its major DRAM competitor, Samsung, is making loud noises about the problems its cash flow crisis is causing other Korean firms.

You can find the Korea Herald story here. µ