Posted on Thursday, May 07 2009 @ 4:05 CEST by Thomas De Maesschalck
Standard & Poor's analyst James Crawshaw believes Infineon
will dodge bankruptcy, the analyst believes a planned debt buyback could help memory maker to survive the economic crisis.
The German chip maker's decision to offer creditors a sweet premium on its outstanding long-term debt and recent improvements in its financial profile will buy Infineon enough time to complete reorganization and cost-reduction actions that could help it dodge bankruptcy, said James Crawshaw, an analyst at Standard & Poor's equity research in London.
The analyst previously had a "sell" rating on Infineon's common shares but upgraded this to "hold," citing rising market valuation and the possibility of a debt-repurchase plan that potentially could help the company cut long term debt, lower interest payments and improve the odds of surviving without resorting to further drastic measures.
