MagnaChip Semiconductor 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"), became 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. 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."
