Spansion Files for Bankruptcy Protection in the U.S.
Bankruptcy
Spansion Inc., the U.S. maker of memory chips for mobile phones, filed for bankruptcy protection to restructure its debt after failing to make an interest payment on $266 million of bonds.
The company listed debt of $2.4 billion and assets of $3.8 billion as of the end of the third quarter of 2008 in Chapter 11 documents filed yesterday in U.S. Bankruptcy Court in Wilmington, Delaware.
Spansion announced plans to cut 35 percent of its workforce on Feb. 23, after missing a second payment deadline on the notes. The Sunnyvale, California-based company hasn’t made a profit since it was spun off by Advanced Micro Devices Inc. in 2005, and has been hurt by slackening demand for semiconductors.
Spansion continues to explore strategic opportunities while attempting to restructure debt and focusing on operations with profit-generating potential, the company said yesterday.
“Chapter 11 provides the most effective means for Spansion to preserve its business,” Chief Executive Officer John Kispert said in a statement. Four subsidiaries also sought protection.
The shares slumped 60 percent to 2 cents in Nasdaq Stock Market trading at 9:56 a.m. New York time. They have fallen 99 percent since reaching a 52-week high of $3.70 in May.
The 65 largest unsecured consolidated creditors are owed $951.1 million, court papers show.
Related listings
-
Journal Register files for bankruptcy protection
Bankruptcy 02/23/2009The Journal Register Co. filed Saturday for bankruptcy protection from its creditors and said slumping advertising revenue and circulation are to blame. In the Chapter 11 filing in U.S. Bankruptcy Court in Manhattan, Journal Register proposed a restr...
-
Delphi seeks to end health benefits for retirees
Bankruptcy 02/06/2009Troubled auto parts supplier Delphi Corp. has asked a bankruptcy judge to allow it to cancel health care and life insurance benefits for current and future salaried retirees, citing the steep downturn in the overall auto industry in recent months. Th...
-
Delaware bankruptcy court restricts Nortel trading
Bankruptcy 01/16/2009The U.S. Bankruptcy Court for the District of Delaware ordered trading restrictions on shares of Nortel Networks Corp., the Canadian telecommunications equipment maker said Friday. Toronto-based Nortel said restrictions were set on trading of its com...
New York Commercial Litigation Law Firm - Woods Lonergan PLLC
Founded in 1993 by Managing Partner James F. Woods, Woods Lonergan PLLC has built a strong reputation as a resourceful and industrious firm that provides clients with clear, concise, and straightforward answers to their most challenging legal issues. Partner Lawrence R. Lonergan, who joined the firm in 2008, has been a friend and colleague to Mr. Woods for over 40 years and shares the same business philosophy. Woods Lonergan PLLC’s collective experience and expertise enables the firm to expeditiously and effectively analyze the increasing challenges clients face in an evolving business and legal world, in many instances, avoiding unnecessary time and expense to our clients. Our mission is simple: provide cutting-edge expertise and sound advice in select areas of the law for corporate and business clients. We thrive on providing each client with personalized attention, forceful representation, and a collaborative team effort that embraces collective knowledge.