November 9, 2009, Seoul – MagnaChip Semiconductor (“MagnaChip” or “the Company”) announced that its Second Amended Plan of Reorganization confirmed by the United States Bankruptcy Court for the District of Delaware on September 25, 2009 (the “Plan”), will become effective on Monday, November 9, marking MagnaChip's emergence from voluntary Chapter 11 restructuring.
The Plan was overwhelmingly supported by the Company’s creditors. Under the Plan, Avenue Capital Management II, L.P. (“Avenue Capital”) has become the controlling shareholder of MagnaChip, and other secured and unsecured creditors have received minority equity stakes. MagnaChip has reduced its long-term debt to only $62 million, leaving the Company’s balance sheet nearly net debt free with over $50 million of cash on the balance sheet.
Sang Park, CEO of MagnaChip Semiconductor said, “I am very happy to announce that MagnaChip has overcome its difficulties and is now financially robust and ready to continue executing our growth plan. We greatly appreciate the solid support of our creditors and especially our customers, suppliers, and business partners. The quick completion of our financial restructuring is a testament to our employees and the strength of our business.”
About Avenue Capital Group
Avenue Capital Group manages assets valued at approximately $19.2 billion*. Avenue is a leading global investment management firm specializing in distressed and undervalued public and private debt and equity securities of undervalued and distressed companies. Founded in 1995, Avenue is headquartered in New York, with offices in London, Munich, Luxembourg, and nine offices throughout Asia.
About MagnaChip Semiconductor
Headquartered in South Korea, MagnaChip Semiconductor is a leading, Asia-based designer and manufacturer of analog and mixed-signal semiconductor products for high volume consumer applications. The Company has a broad range of analog and mixed-signal semiconductor technology and intellectual property, supported by its 30-year operating history, large portfolio of registered and pending patents and extensive engineering and manufacturing process expertise. For more information, please visit www.magnachip.com.
* Estimated AUM as of September 30, 2009.