Qimonda Richmond, Qimonda North America file joint liquidation plan

By Caroline Salls

Pittsburgh, June 8 - Qimonda Richmond, LLC and Qimonda North America Corp. filed a joint plan of liquidation and related disclosure statement Tuesday with the U.S. Bankruptcy Court for the District of Delaware.

The cash available in Qimonda Richmond's estate to fund the plan and a Qimonda Richmond liquidating trust will come from net asset sale proceeds, any avoidance action recoveries, any distributions from an employee settlement agreement insolvency proceeding claim and a $218,750 cash payment from a proposed settlement with an affiliate.

Qimonda Richmond said it estimates it will have $70.6 million of cash available on the plan effective date.

Meanwhile, Qimonda North America said its cash to fund the plan and a Qimonda North America liquidating trust will come from net cash from the collection of receivables and a G2 arbitration award, any avoidance action proceeds, any distributions from a patent proceeds insolvency proceeding and $217,750 from the affiliate settlement.

Qimonda North America estimates that it will have $21.3 million of cash on the plan effective date.

Treatment of creditors will include:

• Holders of debtor-in-possession 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.

The disclosure statement hearing is scheduled for July 12. The plan confirmation hearing will be held on Sept. 19.

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

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