German memory chip maker Qimonda has filed for insolvency. The struggling company reports the 325 million euro financial rescue package agreed in December 2008 failed to be completed in time to save the company.
Qimonda CEO Kin Wah Loh explains the German law filing for insolvency will allow the company to accelerate its restructuring process and put the company back on a solid foundation.
Qimonda said in a statement on Friday that it had failed to hammer out all the details of the rescue package in time and a massive decline in prices for memory chips, combined with deteriorating conditions for access to capital forced its hand.
Qimonda Chief Executive Kin Wah Loh said under German law filing for insolvency allowed the company to accelerate its restructuring process and "put the company back on a solid foundation".
Loh said he aimed to restructure major parts of Qimonda. "We expect to continue our business with the support of a provisional insolvency administrator."