Qimonda Richmond enters into DIP facility commitment letter

By Caroline Salls

Pittsburgh, March 13 - Qimonda Richmond LLC obtained court approval to enter into a commitment letter in connection with a potential $40 million debtor-in-possession financing facility from GB Merchant Partners, LLC, according to a Friday filing with the U.S. Bankruptcy Court for the District of Delaware.

Without court approval of the commitment letter terms and payment of a related commitment fee, the company said it would not be able to induce GB Merchant to invest the time and money to conduct due diligence and negotiations required to complete a full DIP facility.

Qimonda said it will file a separate motion for interim and final approval of the complete DIP facility.

The company said it needs access to additional liquidity to continue its operations beyond mid-April and be able to wind down its operations as it explores its asset sale alternatives.

According to the commitment letter, the DIP facility would mature on the earliest of one year from entry of the interim order, 25 days after the interim order if the final order has not been entered and the effective date of a plan of reorganization.

The amount of the commitment fee and the proposed interest rate were filed under seal.

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

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