Micron: Elpida reorganization plan approved by Tokyo District Court

By Caroline Salls

Pittsburgh, Feb. 28 - Elpida Memory Inc.'s plan of reorganization has been approved by the Tokyo District Court, according to a Micron Technology, Inc. news release.

As previously reported, Elpida's plan calls for Micron to sponsor Elpida's reorganization. Elpida will become a wholly owned subsidiary of Micron.

Micron said the Tokyo District Court's approval follows an Elpida creditor vote, concluded on Feb. 26, in which the creditors voted to approve the reorganization plan.

"This is an important milestone that brings us a significant step closer to Micron and Elpida becoming the world's second largest memory company with the strongest product portfolio in the industry," Micron chief executive officer Mark Durcan said in the release.

Closing of the transaction remains subject to finalization of the Tokyo District Court's approval order under Japanese bankruptcy rules, which Micron said could occur in as little as four weeks if no appeal is filed, and recognition of Elpida's plan by the U.S. Bankruptcy Court for the District of Delaware.

Elpida and Micron continue to target completion of the transaction in the first half of 2013, the release said.

Elpida, a Tokyo-based manufacturer of DRAM integrated circuits, filed for bankruptcy on March 19, 2012 to gain recognition of its Japanese proceedings. Its Chapter 15 case number is 12-10947.

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