As posted by: Wall Street JournalFRANKFURT -- Qimonda AG of Germany will get a cash infusion of €325 million, or about $450 million, from major stakeholders, keeping the memory-chip maker operating into next year.
A pedestrian walks past the plant of memory chip manufacturers Qimonda and Infineon in the German city of Dresden.
Qimonda warned this month that it could run out of cash early next year if it failed to find an investor or strategic partner. The company's cash reserves have been draining as demand dropped for its DRAM chips used in mobile phones, personal computers and other consumer products.
Qimonda said Sunday it will get a €75 million loan from parent company Infineon Technologies AG, which has a 77.5% stake; a €150 million loan from the German state of Saxony, where Qimonda employs 3,200 employees in the city of Dresden; and a €100 million loan from an unnamed financial institution in Portugal.
The company employs 1,800 in Porto, Portugal.
In addition, Qimonda said it expects to receive guarantees totaling €280 million from Saxony and the German government. Based on such guarantees, Qimonda is in advanced negotiations regarding additional bank financing of €150 million, the company said.
