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Troubled Elpida to Draw Up Rehab Plan in 6 Weeks
28 Feb 2012 EST - Reuters
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Japanese chipmaker Elpida Memory, which has filed for bankruptcy protection, will draw up a rehabilitation plan within six weeks as it works to slash debt quickly to appeal to potential turnaround sponsors, the Nikkei said on Wednesday.

The world's third-largest maker of dynamic random access memory (DRAM) chips hopes to get back on its feet by deciding on a sponsor firm by mid-April but might face problems because it filed for bankruptcy without consulting key lenders first, the business daily reported.

In comparison, Japan Airlines Corp took eight months before submitting their rehabilitation plan after filing for bankruptcy protection in 2010.

Elpida filed for protection from creditors on Monday with $5.6 billion in debt after potential partners failed to come through to rescue the cash-strapped chipmaker.

The rehabilitation plan is to include specifics such as the percentage of debt the company will repay. Yukio Sakamoto is to stay on as president if key creditors approve, the newspaper reported.

A company spokesman declined to comment on the report.

The chipmaker had been in talks on a capital and business partnership with Micron Technology since the end of 2011, and the U.S. chipmaker is seen as the leading candidate to sponsor Elpida's rehabilitation, the Nikkei said.

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