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Tokyo court rejects plan by some Elpida creditors to stop sale to Micron

A Japanese court has decided to send Elpida Memory’s bankruptcy reorganization plan to creditors for approval.  Elpida announced the decision on its website Oct. 31.

Boise-based Micron Technology reached a $2.5 billion agreement with Elpida in July to buy the Japanese memory chip company’s equity with a cash payment of $750 million and $1.75 billion in future installments. But a group of Elpida bondholders sued to stop the sale of the company to Micron because they thought the price was too low.  The Tokyo bankruptcy court rejected this proposal.

Elpida’s creditors will have until Feb. 26, 2013 to consider and approve Micron’s deal with the Japanese company.

“Micron is pleased with the Tokyo district court’s order to submit Elpida’s plan of reorganization to creditors for approval,” said Micron CEO Mark Durcan in a press release Oct. 31.

The deal is subject to creditor, as well as, court and regulatory approvals.  Micron expects the acquisition to be complete in the first half of 2013.

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