DRAM menufacturer Qimonda has filed for bankrupcty protection in a local court in Munich, Germany, after a bailout financing deal between Qimonda’s parent company, Infineon, a Portuguese investment firm, and the German state of Saxony failed to come through. Qimonda is the first DRAM manufacturer forced to seek bankruptcy protection in the recent global economic downturn; the company has also been hit hard by a worldwide glut in memory products that kept prices for RAM near (or even below) the costs of manufacturing DRAM for most of 2008.
Qimonda is seeking to reorganize its business, and anticipates the bankruptcy filing will enable it to more rapidly restructure its business and get back on its feet. “We assume we will be able to continue our business within the context of our restructuring program with the support of the temporary insolvency administrator and our employees,” said CEO and president Kin Wah Loh, in a statement.
The Munich court has appointed Dr. Michael Jaffé, a well-known bankruptcy attorney, as preliminary insolvency administrator for Qimonda.
Qimonda employs over 12,000 people worldwide.
The state-supposed bailout plan had been set to infuse €325 million (about $420 million) into Qimonda, but the deal hasn’t been finalized and the company hasn’t received any of the funds.
Taiwan has also moved to shore up the books of its own DRAM manufacturers, pledging almost $6 billion in bailout money to support its memory manufacturers.
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