Qimonda files for insolvency

The Qimonda management board intends to restructure key business units once the court has appointed a preliminary insolvency administrator. According to Kin Wah Loh, Qimonda’s president and ceo, the insolvency petition is the result of the massive drop in prices in the DRAM industry and dramatically decreased access to financing on the capital markets. A financing package involving parent company Infineon and additional financial institutions could not be completed in time and a temporary insolvency administrator will be analysing the situation over the next few days. Loh said: “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. We are especially counting on the excellent relationships with our customers and suppliers, with whom we have made significant progress in developing our Buried Wordline technology during the last months.”