Rexchip to launch rights issue for NT$6 billion

Rexchip to launch rights issue for NT$6 billion

Rexchip to launch rights issue for NT$6 billion Josephine Lien, Taipei; Jessie Shen, DIGITIMES [Monday 12 March 2012] Rexchip Electronics, the Taiwan-based production subsidiary of Elpida Memory, has revealed plans to raise an additional paid-in capital of NT$6 billion (US$203 million) through issuing new shares. The new funds will be used to repay debts that are due soon, as well as financing company operations. The planned fund raising has been approved by Rexchip's board of directors, subject to shareholder approval. Rexchip's debts owed to creditor banks in Taiwan are estimated at more than NT$11.7 billion, of which NT$7.8 billion will have to be repaid in 2012. The firm also has around NT$6.3 billion worth of overseas debts coming up for repayment this year. Kingston Technology is likely to have participate in the rights issue, since major shareholder Elpida is unable...

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