Portugal

Qimonda, the insolvent German memory-chip maker, yesterday entered formal bankruptcy proceedings as its search for an investor dragged on, the Financial Times reported. The company said 915 of just under 3,400 employees would keep their jobs as it shuttered more sites--including its main plant in Dresden. Michael Jaffé, the insolvency administrator, said he remained in talks with "potential interested parties", and with governments in Germany and Portugal about supporting any new owner.

Inspur International Ltd., a Hong Kong-listed computer and information technology company, said it’s not interested in acquiring a stake in Qimonda AG, the memory-chipmaker that filed for insolvency in January, Bloomberg reported. Inspur Group Co., the parent of Inspur International Ltd., ended talks to buy a stake in Qimonda, Liu Xueheng, Hong Kong- based spokesman at the unit, said by phone today. Negotiations ended after Qimonda’s insolvency filing, Liu said.

European countries still deal with insolvent firms far more harshly than America does, and most such firms end up in liquidation, a recent Economist analysis found. They often treat creditors badly too, meaning that neither side ends up satisfied. Observers worry that Europe will cope with the coming flood of defaults far less effectively than America, meaning a slower recovery. In recent years several European countries have tried to change their systems so that companies have a better chance of survival.

Troubled memory-chip maker Qimonda AG on Sunday secured a rescue package of €325 million ($452 million) in loans from a German regional government, parent company Infineon and a Portuguese state bank, the Associated Press reported. The Economy Ministry in the German state of Saxony, where Qimonda has a major plant, said in a statement that it achieved a "breakthrough" when Portugal agreed to join the rescue package through its state investment bank. The company has a facility in Porto, Portugal.

Portuguese authorities seized control of Banco Privado Português SA, providing emergency funding for the troubled unlisted bank, The Wall Street Journal reported today. The seizure Tuesday was coordinated among Portugal's finance ministry, the Bank of Portugal and six of the country's largest banks, the central bank said. BPP is the second Portuguese bank to face liquidity problems as a result of the global financial crisis. Last month, Portugal nationalized unlisted Banco Português de Negócios SA after the bank recorded huge losses.