[ad_1]
This could be a good week to resolve a legal dispute that has been brewing for years. Deutsche Bank reaches agreement with many plaintiffs on Postbank acquisitiona dispute that dates back to 2010. Now the Munich chip company also has Infineon Technologies It resolved its legal dispute with its former subsidiary Qimonda after 14 years.
This will be quite expensive for Infineon – similar to Deutsche Bank – and more expensive than expected. The semiconductor manufacturer will also have to pay Qimonda insolvency administrator Michael Jaffé around 750 million euros. Infineon has so far only set aside around 220 million euros for the dispute. Due to interest effects, the income statement for the current fiscal year ending in September will be burdened by a further 660 million euros.
“A more expensive ending, but an ending at least.”
A spokesman said there was enough liquidity to cover the payment. “Painful but manageable,” one analyst told Reuters. Another said the figure was alarmingly high: “For Infineon, the end result is higher costs, but at least there is an end.”
Anyway, the case is complicated. 18 years ago, in 2006, Infineon spun off its entire memory chip business. At the time the company was very volatile, suffered heavy losses and was even in danger of bankruptcy. That’s why it was supposed to disappear soon. The new subsidiary was called Qimonda, had 13,500 employees and was one of the world’s largest memory chip manufacturers at the time. The company was eventually listed in New York and Infineon sold its shares. But Qimonda never made a profit, the expected state aid did not come, and in January 2009 Qimonda went bankrupt. At least Infineon was not affected and has since focused on smart products semiconductor It is currently one of the top ten chip companies in the world and the only chip company headquartered in Europe.
But the Qimonda bankruptcy has consequences. Munich insolvency administrator Jaffé, which has liquidated the Kirch Group and is currently acting as insolvency administrator for Wirecard, has been taking action against Infineon since 2010. The allegation: A worthless business was divested. Infineon should pay for this. Infineon estimated the value of the memory chip division at 600 million euros when it was spun off, but the appraiser appointed by the Munich First Regional Court recently came up with a negative value of billions of euros. Jaffé’s first claim is for 3.4 billion euros plus interest.
Now the two parties have reached an agreement. Infineon announced that all legal disputes and claims against Infineon by the bankruptcy administrator have been excluded. Jaffé has now raised a total of 1.2 billion euros, which Qimonda’s creditors will receive. Jaffé now promises them a “substantial” bankruptcy quota, which can be paid relatively quickly. The government’s funding of Qimonda can now also be repaid.
[ad_2]
Source link
