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Qimonda U.S. files for bankruptcy, too

Posted: 24 Feb 2009 ?? ?Print Version ?Bookmark and Share

Keywords:DRAM? Qimonda insolvency? U.S. unit bankruptcy?

Qimonda AG couldn't seem to find a break as the troubled DRAM maker's U.S. subsidiary has now filed for bankruptcy.

The U.S. unitQimonda North America Corp. and Qimonda Richmond L.L.C.have each filed a voluntary petition for relief under Chapter 11 of the U.S. Bankruptcy Code in the U.S. Bankruptcy Court for the District of Delaware.

The U.S. company plans to continue its sales and marketing operations and the previously-announced wind down of its Sandston, Virginia-based fab. Management will now focus on developing a corporate restructuring plan.

On Jan. 23, after failing to secure anticipated government financing, the parent company, Qimonda AG, filed for insolvency protection in Germany.

Qimonda's U.S. unit determined that it was in the best interest of the company to file for bankruptcy protection. "While the decision to file was not easy, it was necessary under the circumstances to allow us an opportunity to restructure our balance sheet and improve our operations," said Miriam Martinez, president and chief financial officer for Qimonda North America, in a statement.

"Through the reorganization process, we anticipate that we will continue to serve our customers without interruption and continue to meet their expectations," Martinez said.

Qimonda's U.S. unit has retained Alvarez & Marsal, a restructuring and corporate advisory firm, to assist the company throughout the restructuring process, and Simpson Thacher & Bartlett, LLP as its counsel.

Next move
Troubled Qimonda, a subsidiary of Infineon Technologies AG, has until the end of March to find an investor, or investors, to buy the assets and allow the business to continue as a going concern. If no substantial solution can be found by that time Qimonda is set to be broken up and the assets sold off.

If reports in the German media are proved correct, Chinese chip manufacturer CSMC is the mysterious suitor for the insolvent DRAM manufacturer. However, it seems highly unlikely that the Chinese company indeed is interested in taking over Qimonda's production.

- Mark LaPedus
EE Times

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