Qimonda U.S. subsidiaries' plan of liquidation takes effect on Oct. 7

By Caroline Salls

Pittsburgh, Oct. 11 - Qimonda Richmond LLC and Qimonda North America Corp.'s joint plan of liquidation took effect on Friday, according to a filing with the U.S. Bankruptcy Court for the District of Delaware.

As previously reported, the plan was confirmed on Sept. 19 after the debtors made three non-material changes to accommodate objections filed by the Internal Revenue Service and Kingston Technology International Ltd., and informal comments from the debtor-in-possession lender.

The changes included additional language in the plan to protect the IRS' right to future actions, preserve the agreement between the debtors and Kingston and allow the release to the estate of $2.1 million held by the DIP lender in various escrow accounts.

The liquidation plan was uncontested and was supported in a nearly unanimous vote of creditors.

Treatment of creditors under the confirmed plan will include the following:

• Holders of DIP claims, administrative claims, priority tax claims and other priority claims will be paid in full in cash;

• Holders of secured claims will either receive the collateral securing the claim or receive cash equal to the value of that collateral;

• Holders of general unsecured claims will receive a share of an unsecured creditor liquidating trust; and

• Holders of equity interests will receive no distribution.

Qimonda North America and Qimonda Richmond, U.S. subsidiaries of Munich, Germany-based semiconductor chip producer Qimonda AG, filed for bankruptcy on Feb. 20, 2009. The Chapter 11 case number is 09-10589.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.