Qimonda U.S. subsidiaries file Chapter 11 bankruptcy

By Caroline Salls

Pittsburgh, Feb. 20 - Qimonda AG U.S. subsidiaries Qimonda Richmond LLC and Qimonda North America Corp. filed for Chapter 11 bankruptcy Friday in the U.S. Bankruptcy Court for the District of Delaware with plans to sell the Qimonda Richmond assets.

According to a declaration filed by president and chief financial officer Miriam Martinez, Qimonda tried to offset falling prices by implementing various restructuring programs and refocusing on its diversification strategy, but the market continued to decline and customer demand decreased.

"Despite intensive and complex negotiations and financial support committee by customers [Qimonda AG] could not consummate the rescue financing package," Martinez said in the filing.

Martinez said the company plans to use the bankruptcy process to find a buyer for Qimonda Richmond, which is expected to be idle with a skeleton crew by April.

Qimonda North America may separate from Qimonda Richmond and be included in a sale or reorganization of the global company, according to the filing.

Qimonda listed more than $1 billion of both assets and debt.

The company's largest unsecured creditors include:

• Applied Materials, Santa Clara, Calif., with a $9.92 million trade claim;

• Sumco USA Corp., Plano, Texas, with a $6.48 million trade claim;

• Tokyo Electron Ltd., Tokyo-to, Japan, with a $5.93 million trade claim;

• Siltronic, San Jose, Calif., with a $4.03 million trade claim;

• Memc Electronic Materials Inc., St. Peters, Mo., with a $3.03 million trade claim;

• JSR Microelectronics, Sunnyvale, Calif., with a $2.85 million trade claim;

• Tokyo Electron America, Austin, Texas, with a $2.26 million trade claim;

• Air Products & Chemicals Inc., Baltimore, with a $2.09 million trade claim;

• West Coast Quartz Corp., Freemont, Calif., with a $1.82 million trade claim; and

• Fujifilm, North Kensington, R.I., with a $1.43 million trade claim.

Qimonda is a Munich, Germany-based semiconductor memory products producer. The U.S. subsidiaries' Chapter 11 case is being jointly administered under case number 09-10589.

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