Powerchip Semiconductor Corp (力晶半導體), the nation’s largest computer memory chipmaker, said yesterday it would extend the deadline for its bond payment deal by a week to garner more support from investors.
The Hsinchu-based company said its board of directors also approved a proposal to sell as many as 1.2 billion new shares, with the proceeds to be used for future expansion needs, repay debts and boost working capital, it said in a stock exchange filing yesterday.
Powerchip said about 89 percent of bondholders had agreed to the new payment terms as of Thursday, near the 90 percent threshold to clinch the deal.
“To allow more bondholders to have the chance to convert their bonds, we will extend the deadline to 3pm, June 25, London time,” company spokesman Eric Tan (譚仲民) said in the statement.
“The terms will be the same,” he said
The chipmaker has obtained the money needed to repay the debt and has established a trust fund at Mega International Commercial Bank Co (兆豐銀行) to make the payment in cash, the statement said.
Powerchip had said it would need about NT$2 billion (US$60.8 million) in cash to repay the bonds.
The chipmaker has offered to pay US$400 in cash for every US$1,000 in bonds and convert the remaining US$600 in bonds into common shares based on a lower conversion price, which was previously set at NT$20.17 a share.
Plans to reset the conversion price are still subject to approval by Powerchip’s shareholders, who are scheduled to meet next Friday.
Shares of Powerchip fell 6.72 percent yesterday after the stock was banned from margin trading because the company failed to repay its debts on the due date, June 17.
Powerchip expects its shares to resume normal trading next month at the earliest, as it hopes to solve its financial problem in the near term, the company said.
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