Qimonda Richmond requests approval of $175.5 million asset sale

By Caroline Salls

Pittsburgh, Sept. 4 - Qimonda Richmond, LLC requested court approval of the proposed $175.5 million sale of some of its assets to Texas Instruments Inc., according to a Thursday filing with the U.S. Bankruptcy Court for the District of Delaware.

The assets being sold include 300 mm tools, office equipment, furniture, information technology equipment, process tools, facility-related systems, support equipment and tool replacement parts, as well as some 300 mm semiconductor manufacturing equipment Qimonda is purchasing from RBS Asset Finance, Inc. and Overland Capital Group, LLC for a total of $4.38 million.

If Texas Instruments is not the high bidder at auction, Qimonda will pay it a $4.31 million break-up fee and reimburse up to $700,000 of its sale-related expenses.

Texas Instruments has made a $17.25 million deposit toward the purchase price.

Competing bids will be due by 4 p.m. ET on Sept. 21. If necessary, the auction will be held on Sept. 23.

The sale hearing is scheduled for Sept. 24.

Under the purchase agreement, Texas Instruments will pay Qimonda Richmond a total of $3.5 million in maintenance and service obligation fees.

Qimonda Richmond, a U.S. subsidiary 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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