Qimonda Insolvency Administrator Quantifies Claims Against Infineon
Neubiberg, Germany – February 14, 2012 – The insolvency administrator of Qimonda AG has filed an alternative request for payment in the lawsuit pending in Munich District Court I over the alleged economic re-establishment of Qimonda AG. This request is in addition to his action for a declaratory judgment in an unspecified amount (see Infineon news release of December 2, 2010).
In his request for payment on the grounds of economic re-establishment the insolvency administrator is seeking payment of at least Euro 1.71 billion, plus interest.
The insolvency administrator is also basing a substantial part of his alleged payment claims on so-called liability for impairment of capital. In this regard, the insolvency administrator claims that the value of the memory business contributed to Qimonda AG as a non-cash contribution in connection with two capital increases in the spring of 2006 was not only not equivalent to the price of the new shares issued in return, namely Euro 600 million in total, but was actually negative. The company’s 2011 annual report already mentioned that in August 2011 the insolvency administrator had lodged claims out of court for an unspecified amount based on liability for impairment of capital (see (p. 235).
As already indicated in the ad hoc notification of December 2, 2010, Infineon is of the opinion that the claims for alleged economic re-establishment are unjustified. The insolvency administrator’s assertions about alleged liability for impairment of capital run contrary to two valuations made in preparation for the capital increases by two independent auditing companies – one by auditors commissioned by Infineon and the other by auditors appointed by the court to audit the non-cash contributions and perform a post-formation audit. The auditor commissioned by Infineon concludes in its valuation that the value of the memory business is many times the amount for which the shares were issued. The court-appointed auditor confirmed to the court that the minimum issue price of the shares was covered by the value of the non-cash contributions, whereupon the capital increases were entered in the company register by the register court.
Together with independent auditors, Infineon has once again made a detailed examination of the value of the non-cash contribution, will continue to vigorously defend itself against the claims, and remains confident about the outcome of this lawsuit.
D I S C L A I M E R
This ad hoc release includes forward-looking statements about our business and the industry in which we operate as well as our expected results.
These forward-looking statements as well as the underlying assumptions are subject to a number of uncertainties, including e.g. broader economic developments; trends in demand and prices for semiconductors generally and for our products in particular as well as for the end-products that incorporate our products; the success of our development efforts, both alone and with partners; the capability to introduce new production processes at our facilities; the actions of competitors; the continued availability of funds; the outcome of antitrust investigations and litigation matters and the outcome of Qimonda’s insolvency proceedings, as well as the other factors mentioned in this ad hoc release and in our financial reports.
As a result, our actual results could differ materially from those contained in these forward-looking statements. You are therefore cautioned not to place undue reliance on them. Unless bound by law Infineon does not undertake any obligation to publicly update any forward-looking statements or revise them in light of developments which differ from those anticipated.
Infineon Technologies AG, Neubiberg, Germany, offers semiconductor and system solutions addressing three central challenges to modern society: energy efficiency, mobility, and security. In the 2011 fiscal year (ending September 30), the company reported sales of Euro 4.0 billion with close to 26,000 employees worldwide. Infineon is listed on the Frankfurt Stock Exchange (ticker symbol: IFX) and in the USA on the over-the-counter market OTCQX International Premier (ticker symbol: IFNNY). Further information is available at www.infineon.com.