Infineon Technologies AG, a German chipmaker, has agreed to pay 753.5 million euros ($837.21 million) to settle a long-standing legal dispute with Qimonda AG’s insolvency administrator. This settlement concludes a lawsuit initiated in 2010, in which Qimonda’s administrator sought 3.35 billion euros, claiming that Infineon had transferred operations to Qimonda at an inflated price.
Qimonda was spun off from Infineon in 2006 but faced financial collapse in 2009 due to a significant drop in chip prices. Following its failure to finalize a rescue package with Infineon, Qimonda filed for insolvency.
The settlement amount is slightly lower than the initially claimed 800 million euros, as Infineon has submitted a declaration of subordination for established claims worth around 26.5 million euros. Infineon stated that the settlement would utilize the provisions it had set aside for the legal dispute, but the amount exceeding this provision would negatively affect its earnings and cash flow from discontinued operations.
The insolvency administrator expressed that the conclusion of the insolvency proceedings is expected by 2025, leading to substantial dividends for Qimonda’s creditors.
Featured Image courtesy of Free Malaysia Today
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