Sunnyvale (CA) – Today, the 2005 AMD spinoff, Spansion Inc., manufacturer of flash memory products, has filed for chapter 11 bankruptcy protection under voluntary petition. The company’s plan is to restructure its “burdensome debt obligations and intensify its focus on market segments with greater profit potential.” All of Spansion’s U.S. subsidiaries filed separate chapter 11 petitions.
President and CEO John Kispert, said, “Given our focus on Spansion’s future, management and the Board have concluded that chapter 11 provides the most effective means for Spansion to preserve its business, meet its post-petition obligations and maintain customer confidence and continuity while we complete this restructuring. At the same time we will continue to explore opportunities for a strategic transaction to ensure that we are doing all we can to maximize value for our stakeholders.”
Spansion’s decision to seek chapter 11 protection came following an “ad hoc consortium of holders of Spansion’s $625 million Senior Secured Floating Rate Notes due 2013.”
Spansion states in their press release that they believe their “current and anticipated cash resources will be sufficient to pay its expenses and maintain its business operations while it explores and implements options to address its long-term cash needs.”
Spansion has emphasized they intend to maintain customer service throughout the reorganization.
Spansion, Spansion LLC, Spansion Technology LLC, Spansion International, Inc. and Cerium Laboratories LLC each filed their voluntary petitions for relief under chapter 11 in the U.S. Bankruptcy Court for the District of Delaware. The chapter 11 filings by Spansion and its domestic subsidiaries are events of default under Spansion’s debt instruments. On February 9, Spansion’s Japanese subsidiary, Spansion Japan Ltd., voluntarily entered into a similar bankruptcy protection in that country, under the Corporate Reorganization Law (Kaisha Kosei Ho).
See Spansion’s press release.