Micron Technology today announced the Tokyo District Court's issuance of an order approving Elpida Memory's plan of reorganization. Elpida's plan of reorganization calls for Micron to sponsor Elpida's reorganization under which Elpida will become a wholly owned subsidiary of Micron.

The Tokyo District Court's approval follows an Elpida creditor vote, concluded on Feb. 26, in which the creditors voted to approve the reorganization plan.

"We are very pleased with the Tokyo District Court's approval of Elpida's plan of reorganization. This is an important milestone that brings us a significant step closer to Micron and Elpida becoming the world's second largest memory company with the strongest product portfolio in the industry," said Micron CEO Mark Durcan.

The closing of the transaction remains subject to the satisfaction or waiver of certain conditions - including finalization of the Tokyo District Court's approval order under Japanese bankruptcy rules that could occur as early as four weeks from today presuming no appeal is filed, and recognition of Elpida's reorganization plan by the United States Bankruptcy Court for the District of Delaware (or the completion or implementation of alternative actions providing a substantially similar effect).

Elpida and Micron target completion of the transaction in the first half of calendar 2013.

Elpida's proposed reorganization plan was submitted to the Tokyo District Court on Aug. 21, 2012, and the Tokyo District Court approved the submission of Elpida's proposed reorganization plan to creditors on Oct. 31, 2012.

Elpida was driven into bankruptcy by falling chip sales and foreign competition. The acquisition would make Micron the No. 2 global supplier of DRAM chips, behind Samsung Electronics.