"Apparently, however, cutting more than a third of the workforce
wasn't enough to cover the costs of retaining top executives,
forcing the company to file for protection under Chapter 11 of the
"The move came on Sunday -- an indication, perhaps, of the
company's haste to be rid of collection calls -- and was filed in
the United States Bankruptcy Court for the District of Delaware, a
common location for big-business filings, given the high
concentration of incorporation in the state due to Delaware's
corporation-friendly taxation. Court filings cite an over-saturated
memory market, bad investments to the tune of $122 million, and
poor cash flow during the past two years, attributed to price drops
and a "sharp decline" in demand, for its woes. The company's filing
follows that of its Japanese subsidiary, which sought protection
under Japan's bankruptcy laws in early February, bearing nearly a
billion dollars in debts."
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