Plan May Result in Breakup of Hynix

Hynix Semiconductor Inc. endorsed a plan to break up and sell the company, conceding under pressure from creditors and the government that the world’s third-biggest computer memory chip maker can’t survive alone.

Creditors had threatened to declare the Seoul-based company bankrupt if it didn’t accept the proposal, which came after its board rejected a $3-billion takeover by Micron Technology Inc. Many investors said the company, burdened by $5 billion in debt, would struggle to stay afloat after creditors refused to provide fresh loans.

The Korean government, which also had pushed for Hynix to accept Micron’s offer, praised the move.

Korea Exchange Bank and other Hynix creditors plan to choose consultants by next week to review how to best divide the company, said Kang Kyung Moon, a credit officer at the lender.

Micron and Hynix had been in talks for more than five months when Hynix’s board rejected the offer.