Infineon vs. Qimonda: Court report on the billion-dollar insolvency - analysis and effects.

Infineon vs. Qimonda: Court report on the billion-dollar insolvency - analysis and effects.

According to a report by www.deraktionaer.de, the court-appointed expert has presented his report in the legal dispute between the chip manufacturer Infineon and the Qimonda insolvency administrator. The report deals with a storage business that Infineon spun off in 2006 and brought into Qimonda through two non-cash contributions. The insolvency administrator claims that the spun-off storage business was not valuable and is suing for reimbursement of the difference in the issue price of the shares issued to Infineon as part of the spin-off from Qimonda.

According to the report, the value of the storage business brought by Infineon into Qimonda is a good minus one billion euros, while the value of the contributions in kind is given in the statement as plus 600 million euros. It is emphasized that the extent of Infineon's possible liability depends on other aspects. Infineon will examine the report in detail and as of September 30, 2023, provisions totaling 212 million euros were recognized in connection with Qimonda.

The determination of the liquidation values, which, in Infineon's opinion, at least reached the values ​​required for the contributions in kind and thus excludes the differential liability claimed by the insolvency administrator, is not the subject of the report. It is currently not foreseeable when a first-instance court decision will be made, and the impact on the share price is likely to be limited for the time being.

From a financial perspective, Infineon's possible liability based on the report could represent a financial burden for the company, especially if the insolvency administrator's lawsuit is successful. This could lead to a reduction in the company's value and share price. Investors should closely monitor developments in this Infineon litigation and consider any potential impact on their investment decisions. However, the exact impact on the market and the financial industry depends on further developments and rulings in this litigation.