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Spansion files U.S. chapter 11 bankruptcy

02 March 2009 | By Mark Osborne | News > Fab Management

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The largest supplier of NOR flash memory devices, Spansion Inc., has filed for chapter 11 bankruptcy in America, following its Japanese subsidiary, Spansion Japan Ltd., entering into bankruptcy proceedings in early February. The company said it would continue operations while the restructuring took place and hoped that it could restructure is considerable debt, which has been a feature of Spansion since its spin-off from AMD in 2005. Spansion had never been profitable.

"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,'' said President and CEO John Kispert. "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."

However, the company reinstated full pay to a range of executives and senior managers last week, stating that this was intended to retain important workers, while previously announcing a workforce reduction of approximately 35%.

Spansion also said it would rationalise its product portfolio and concentrate its business on the embedded NOR flash markets and hopes to exit chapter 11 bankruptcy quickly.

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