Portugal joins Qimonda bail-out worth $450 million

From EETimes.com: Struggling memory maker Qimonda AG announced Sunday (Dec. 21) that is has arranged a 325 million euro (about $450 million) financing package. In return, Qimonda has promised to continue to develop its R&D and manufacturing sites in Porto, Portugal and Dresden, Germany.

The package includes a 150 million euro loan (about $210 million) from the German Free State of Saxony, a 100 million euro (about $140 million) loan from a financial institution in Portugal and a 75 million euro (about $105 million) loan from Qimonda's parent company Infineon.

Although in the form of loans this is more cash than a previous, contentious plan rejected by Infineon last week. In addition Qimonda will have the opportunity to draw on a 280 million euro (about $400 million) state guarantee being provided by the Federal Republic of Germany and the Free State of Saxony.

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