JAPANESE MEMORY MAKER Elpida has been hit by allegations from some of its bondholders that the firm conducted unauthorised dealings with its US assets.
Elpida, which is trying to finalise a deal with Micron to lift the company out of bankruptcy, has faced a bondholder revolt amid claims that Micron is not offering fair market value for the DRAM maker. Now some of Elpida's bondholders have alleged the firm carried out unauthorised dealings with its US assets.
Elpida was due to appear at a Delaware bankruptcy court hearing but cancelled, opting instead to engage in talks with the bondholders. The bondholders claim that Elpida made four unauthorised transactions and they opposed the firm's request to seal the documents, claiming they were critical to all those involved to understand their rights in the case.
Elpida's bondholders also filed a reorganisation plan for the firm in Tokyo District Court. The bondholders' plan, which would keep Elpida operating as a separate company, is being reviewed by a court appointed committee with a decision expected by the end of the month.
Ever since Elpida filed for bankruptcy, Micron has been the only company interested in buying Japan's last DRAM maker. While Elpida's bondholders might believe that the firm is being sold off on the cheap, given that no other big DRAM player has shown interest in buying the company, which owes billions, they might have little option but to take a hit on their investments. µ