Infineon and Qimonda insolvency administrator reach partial settlement

Infineon Technologies AG has entered into an out-of-court agreement with the insolvency administrator of Qimonda AG to settle all disputes – with the exception of the pending lawsuit on the economic re-establishment of a shell company ("wirtschaftliche Neugründung") and liability for impairment of capital ("Differenzhaftung") – against payment of a settlement amount of 135 million euros. In addition, Infineon will acquire all patents of Qimonda AG for 125 million euros. The settlement now reached ends the following lawsuits and further points of dispute between Infineon and the Qimonda insolvency administrator: a) the disputes regarding the continued existence of the rights of use of Infineon and its licensees under the Qimonda patents, b) the claims asserted by the insolvency administrator in the action for rescission before the Regional Court in Munich, and c) any other claims of the insolvency administrator, providing they are not related to the proceedings on the economic re-establishment of a shell company and liability for impairment of capital. The partial settlement is covered by provisions already recognized by Infineon. The payment of the settlement amount will be made from existing liquidity. The closing of the settlement and of the acquisition of patents is subject to various legal conditions being met; it is expected to occur in the next calendar quarter. "With this partial settlement, we have made significant progress in the insolvency proceedings over the assets of Qimonda AG. We were able to find a solution for key aspects of the proceedings and in the interest of our creditors ensure a considerable increase in the estate," said insolvency administrator Dr. Michael Jaffé. The dispute before the Regional Court in Munich about the economic re-establishment of a shell company and liability for impairment of capital has not been settled. As reported in several press releases (December 2, 2010; February 14, 2012; most recently on June 15, 2012), Infineon believes that the claims asserted in this lawsuit are unjustified and remains confident about the outcome of this legal dispute.