Infineon headquarter is pictured before the annual results news conference in Munich, Germany, November 15, 2023. REUTERS/Michaela Rehle/ File Photo
(Reuters) - German chipmaker Infineon Technologies AG said on Thursday it has reached a settlement with Qimonda AG's insolvency administrator by agreeing to pay 753.5 million euros ($837.21 million), ending the long-pending legal dispute.
Qimonda's administrator had sued Infineon in 2010 for 3.35 billion euros, arguing the chipmaker had transferred operations to it at an inflated price.
The company was spun off from Infineon in 2006, but collapsed in 2009 after chip prices plunged.
It filed for insolvency after failing to hammer out details of a rescue package with its parent company.
The settlement agreement is for 753.5 million euros, slightly lower than claimed 800 million euros, as Infineon is submitting a declaration of subordination for already established claims, for around 26.5 million euros, the administrator said in a statement.
"As a result of the payments, Infineon will utilize the provisions set aside for the legal dispute. The amount in excess of this will have a negative impact on earnings and cash flow from discontinued operations," Infineon said.
The administrator added the conclusion of insolvency proceedings will be possible in 2025, with substantial dividends for the creditors.
($1 = 0.9000 euros)
(Reporting by Nilutpal Timsina in Bengaluru;Editing by Mohammed Safi Shamsi)
