German memory chip maker Qimonda (QI), which has filed for insolvency at a local court in Munich, couldn't provide a sustainable business model and banks had declined to take on remaining risks, an economics ministry spokeswoman said Friday.
Qimonda fell into trouble due to the massive drop in prices in the DRAM industry and the dramatically decreased access to financing on the capital markets.
A bailout plan involving the Free State of Saxony, parent company Infineon Technologies AG (IFX.XE), a leading Portuguese financial institution and additional banks, couldn't be completed in time, according to Qimonda.
Web site: www.bmwi.de; www.qimonda.com
-By Andrea Thomas, Dow Jones Newswires, +49 (0)30 - 2888 4126, andrea.thomas@dowjones.com
(Archibald Preuschat in Frankfurt contributed to this report)
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