Nov. 7 (Bloomberg) -- MagnaChip Semiconductor LLC emerged from Chapter 11 and the South Korean chipmaker said its second amended plan for reorganization will take effect Nov. 9.

Avenue Capital Management II L.P. became the controlling shareholder of the company, MagnaChip said in a statement. The chipmaker in September won court approval for its plan to reorganize.

The company has reduced long-term debt to $62 million, leaving it with more than $50 million in cash, according to the statement. MagnaChip and five affiliates sought bankruptcy protection in June, listing assets of $425 million and debt of $1.04 billion as of Dec. 31. The company filed for bankruptcy because of a loss of research talent and declines in revenue last year as a result of shrinking customer demand.

MagnaChip designs and manufactures semiconductor products used in mobile phones, digital televisions and laptop computers.

To contact the reporter on this story: Seyoon Kim in Seoul at skim7@bloomberg.net

Last Updated: November 6, 2009 21:27 EST