This article is from the source 'bbc' and was first published or seen on . It last changed over 40 days ago and won't be checked again for changes.
You can find the current article at its original source at http://www.bbc.co.uk/go/rss/int/news/-/news/business-17200916
The article has changed 2 times. There is an RSS feed of changes available.
Previous version
1
Next version
Version 0 | Version 1 |
---|---|
Elpida plunges 98% after bankruptcy protection filing | Elpida plunges 98% after bankruptcy protection filing |
(about 11 hours later) | |
Shares of Elpida have plunged on the Tokyo Stock Exchange (TSE) as investors dumped the stock after the firm filed for bankruptcy protection. | |
The company's shares fell as much as 98% to 5 yen. The TSE has said that it will delist Elpida from 28 March. | |
The firm sought protection on Monday saying it had struggled to repay debts of 448bn yen ($5.6bn; £3.5bn). | |
Meanwhile, the Japanese government has not given any hint on whether it may bail out the firm. | |
"Given their huge debts and the subsequent delisting, the share value will go to zero - that is pretty clear," Gerhard Fasol of EuroTechnology Japan told the BBC. | "Given their huge debts and the subsequent delisting, the share value will go to zero - that is pretty clear," Gerhard Fasol of EuroTechnology Japan told the BBC. |
'Critical issue' | 'Critical issue' |
Elpida, which specialises in making dynamic random-access memory (DRAM) chips, has seen its fortunes dwindle recently. | |
Not only has the company been hurt by a slowing demand for these chips, falling prices have also hurt its profits. | Not only has the company been hurt by a slowing demand for these chips, falling prices have also hurt its profits. |
Analysts said that given its debts, the firm would have to find a deep-pocketed partner to help revive its business. | |
"They need to have a partner for the revival. The critical issue is who will that partner," said Mr Fasol of EuroTechnology Japan. | "They need to have a partner for the revival. The critical issue is who will that partner," said Mr Fasol of EuroTechnology Japan. |
However, Mr Fasol said Elpida may find it difficult to convince other companies to invest money in its business. | However, Mr Fasol said Elpida may find it difficult to convince other companies to invest money in its business. |
"They have tried to find a partner but they couldn't find any. That is why they have had to file for protection the first place." | "They have tried to find a partner but they couldn't find any. That is why they have had to file for protection the first place." |
Previous version
1
Next version