Flash memory company Spansion files for bankruptcy

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Flash memory company Spansion files for bankruptcy

Associated Press, 03.01.09, 08:09 PM EST


Struggling flash memory maker Spansion Inc. and its U.S. subsidiaries filed for bankruptcy protection Sunday, in an effort to restructure $625 million worth of debt as the company continues to explore a possible sale or other alternatives.

The news comes a week after Spansion (nasdaq: SPSN - news - people ), one of the world's largest makers of chips used in digital cameras, cell phones and high-definition televisions, said it would slash its global work force by 35 percent, or 3,000 employees.

Demand for flash and chip-based memory is on the decline as sales of electronics which use Spansion's chips dip amid the weak global economy.

Spansion said Sunday it decided to file for bankruptcy following consultation with a lender group holding the company's senior secured floating rate notes due in 2013. The company is in talks with the bondholder group about providing debtor-in-possession financing for its long-term cash needs

[dkf]

1. Hmm. I guess we have to start looking at bond maturities now.

Interesting.

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2. There is a lot of debt that is coming due

And a lot of it is owed to the big banks via commercial paper.

[dkf]

3. Well this was always the scary part.

How are companies going to finance everything that is coming due? I guess this is the beginning of a stream of defaults.

[TwilightZone]

4. Yeah, right after they laid off 35% of their staff so that they could give the execs raises.

Nice timing, hmm?

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5. They have been in serious trouble for a while now, I believe.

SSDs haven't taken off like they thought they would.

[IDemo]

6. Funny you should mention that

Tomorrow is my first day at the SSD lab of a company here in town. That's bound to turn things around. :)

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7. Good Luck!

(And always pack your lunch on the first day of any new job!)

:P

[IDemo]

8. Funny you should mention that, too

I was just seconds ago debating whether to pack a lunch. I guess they have a pretty deluxe cafeteria, but it sounds like you need a Segway to get there and back.

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9. lol

Always make your food the first day. Then scope out what the cafeteria looks like and the quality/cost of the food.


:D

[TwilightZone]

10. We can certainly hope so!

Good luck.