Hynix Semiconductor Inc shares fell as much as 14.6 percent after creditors put off a decision on whether to give the third-largest maker of computer memory chips fresh loans it needs to stay in business.
Hynix shares recently traded 140 won, or 14 percent, lower at 860, leaving them down 79 percent this year. More than 400 million shares were traded making Hynix the most actively traded stock in Korea by volume and value.
Banks, which met Friday to decide on a US$5.4 billion bailout for Hynix, its second in three months, postponed a decision on 500 billion won (US$384 million) of new loans the company asked for.
They agreed to swap 3 trillion won of debt for shares in the company, which is also seeking to sell 1 trillion of new shares.
"Hynix's future is uncertain for now as a new loan is essential for the company's survival," said Choi Suk Po, an analyst at Meritz Securities Co. "The creditors' decision is understandable as personal computer demand will not pick anytime soon after the US terrorist attacks."
Hynix, which lost about US$1.6 billion in the first half, is seeking its second bailout as the US$30 billion industry suffers its worst decline.
At least four lenders said they were opposed to new funds going into Friday's meeting.
RSS