TOKYO (Nikkei)--Yukio Sakamoto has decided to step down as
president of Elpida Memory Inc. to take responsibility for the
company's fall once its takeover by U.S. chipmaker Micron
Technology Inc. (MU) is complete, The Nikkei reported Wednesday
morning.
The major Japanese DRAM manufacturer filed for court protection
from creditors under the Corporate Rehabilitation Law this
February. To speed the turnaround process, the court has allowed
the use of debtor-in-possession rehabilitation, under which some
members of management stay on and oversee the process.
As a result, Sakamoto has taken part in the creation of the
rehabilitation blueprint for Elpida as an administrator. Some
creditors have called this out as inappropriate.
Sakamoto serving as an administrator "muddies the responsibility
for a business going under with 440 billion yen in liabilities,"
one critic said.
Micron is to turn Elpida into a wholly owned subsidiary next
spring. Court approval of the rehabilitation road map submitted
Tuesday by Elpida will move the process toward that eventuality.
Sakamoto will likely resign after the capital injection by Micron
in order to pass the baton for Elpida's turnaround to a fresh
management team.
Sakamoto became Elpida's president in 2002 after stints at U.S.
and Taiwanese chipmakers. The company boosted its global market
share under his lead but has been unable to recover from the
post-Lehman business slump.
Micron plans to make a member of Elpida's management a Micron
director as a way of smoothly integrating the two firms' DRAM
operations. The U.S. chipmaker had sounded out Sakamoto to be that
person. With Sakamoto resigning, Micron will likely select a new
president from within Elpida or its own ranks.