Latest in Administration

Image credit:

Elpida files for bankruptcy protection as debts of $5.5 billion are revealed

Daniel Cooper, @danielwcooper
February 27, 2012
Share
Tweet
Share

Sponsored Links

DRAM Maker Elpida has petitioned for a corporate reorganization (the equivalent of Chapter 11 or Administration) as the company has revealed it is close to collapse. President Yukio Sakamoto is expected to resign as the scapegoat for the calamity as it files for protection at the Tokyo District Court. The company, founded in 1999 as NEC Hitachi Memory Inc. has produced DRAM Products since 2000. It founded three wholly-owned subsidiaries: Tera Probe, which conducted wafer probe testing, Akita Elpida Memory Inc. which handled the back-end processes of DRAM production and Rexchip Electronics Corp, which handled the front-end.

After a blockbuster period of invention, a fall in prices and the global recession in 2006 forced the company to enter restructuring with a 30 billion Yen ($372.54 million) Government-backed loan. That swathe of cash was used to pump more money into investment and R&D, but the combination of strong Yen and the Thailand flooding has once again forced the company to come clean about its finances. It revealed today that it had debts of 448,033 million Yen, or $5.5 billion and without the protection of the court wouldn't last too much longer. Times of Japan points to the strength of Samsung's memory offerings as being a big contributor to Elpida's collapse, with president Sakamoto saying that DRAM is now as cheap as a "rice ball."

All products recommended by Engadget are selected by our editorial team, independent of our parent company. Some of our stories include affiliate links. If you buy something through one of these links, we may earn an affiliate commission.
Share
Tweet
Share

Popular on Engadget

Jabra's ANC update for the Elite 75t earbuds is now available

Jabra's ANC update for the Elite 75t earbuds is now available

View
Hummer EV 'supertruck' has a UI built on Unreal Engine and runs Android

Hummer EV 'supertruck' has a UI built on Unreal Engine and runs Android

View
Jony Ive will help design 'the future of Airbnb'

Jony Ive will help design 'the future of Airbnb'

View
Apple iPad Air (2020) review: Who needs the iPad Pro?

Apple iPad Air (2020) review: Who needs the iPad Pro?

View
Quibi confirms it's shutting down

Quibi confirms it's shutting down

View

From around the web

Page 1Page 1ear iconeye iconFill 23text filevr