Dave Savastano10.02.09
Spansion Inc. has reached another important milestone towards completing its Chapter 11 restructuring with the submission of a motion with the U.S. Bankruptcy Court seeking permission to file its plan of reorganization without the related disclosure statement. Agreement has been reached on the material economic terms of the plan of reorganization with a consortium of holders of the company's senior secured floating rate notes due 2013 and a committee of the company's unsecured creditors.
"This is a significant step in the company's restructuring process," said John Kispert, president and CEO of Spansion. "While we are still finalizing certain details or our plan of reorganization and the disclosure statement, I am pleased with the tremendous progress the entire company has made since beginning our restructuring process."
Spansion initiated the process of reorganizing in February 2009, filing for Chapter 11 bankruptcy protection on March 1, 2009. After exploring a number of strategic alternatives for the business and assets, the company decided to pursue a standalone strategy, narrowing its focus primarily to embedded applications of the Flash memory market and focusing on major segments including portions of the company's previous wireless business.
The company plans to file a complete Plan of Reorganization in the near future with the goal of emerging from Chapter 11 in late fourth quarter of 2009 or early 2010.
"This is a significant step in the company's restructuring process," said John Kispert, president and CEO of Spansion. "While we are still finalizing certain details or our plan of reorganization and the disclosure statement, I am pleased with the tremendous progress the entire company has made since beginning our restructuring process."
Spansion initiated the process of reorganizing in February 2009, filing for Chapter 11 bankruptcy protection on March 1, 2009. After exploring a number of strategic alternatives for the business and assets, the company decided to pursue a standalone strategy, narrowing its focus primarily to embedded applications of the Flash memory market and focusing on major segments including portions of the company's previous wireless business.
The company plans to file a complete Plan of Reorganization in the near future with the goal of emerging from Chapter 11 in late fourth quarter of 2009 or early 2010.