DRAM Maker Qimonda Files for Bankruptcy

From PC World: DRAM maker Qimonda filed a bankruptcy petition with the local court in Munich, Germany, on Friday, seeking time to reorganize its business.

The move came after a financing package involving the German state of Saxony, a Portuguese financial institution and Qimonda's parent company, Infineon Technologies, could not be completed in time, Qimonda said.

Qimonda has been one of the companies hardest hit by a DRAM glut that has kept prices near or below the cost of manufacturing for a year. The economic downturn added to DRAM makers' woes late last year by further eroding demand and making it more difficult to find loans necessary to pay for expensive production line upgrades.

Late last month, Qimonda became the first DRAM maker globally to receive a government bailout pledge during the current financial crisis. Saxony, Infineon and a financial institution in Portugal agreed to loan Qimonda €325 million (US$422.5 million). But the money has not yet been received, according to Qimonda.

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