Demand for PCs, which use Hynix's products, is stagnant and not showing signs of a recovery, while consumer confidence in the US, the world's largest economy, fell in October to its lowest level in more than seven and a half years.
Retreating creditors see the threat of liquidation looming on the horizon and are eager to try to recover their loans. What they get will depend on the potential selling price of the company's assets, which will be determined by an independent valuer. In today's market there are few buyers.
"The market for used fabrication equipment right now is extremely weak," said WI Carr's Ricks. "Outside some Chinese companies, no one is buying. Its liquidation value may be quite low."
The chipmaker has given creditors plans on how it will raise 2.6 trillion won selling assets and cutting operating costs in the second half of this year through to the end of next year, KEB said.
It's been trying to focus on making chips since breaking away from the now defunct Hyundai industrial group, raising money by selling off parts of its flat-panel unit and its flat-screen business.
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