Memory maker Qimonda files for bankruptcy
updated 01:35 pm EST, Fri January 23, 2009
Qimonda going bankrupt
German RAM producer Qimonda has filed for bankruptcy on Friday in a Munich court, according to a report. The move follows an unsuccessful search for funding of the equivalent of about $384 million which was in addition to an earlier approved deal that would see it get the equivalent of about $415 million. As the original sum still has not been received by Qimonda despite being approved last month, it is believed the company is only days away from insolvency.
Owned by Infineon, Qimonda's bankruptcy will result in the majority of its 12,000 employees losing their positions, which is on top of the 3,000 job cuts the company announced back in October. Some of these jobs are in the US, though an unspecified number of the employees may be absorbed by Infineon. Qimonda is expected to continue its admittedly crippled operations and restructuring program with the support of a court-appointed preliminary administrator.
