Spansion Hires Restructuring Expert

SUNNYVALE, California (AP) — Flash memory maker Spansion Inc., which filed for bankruptcy protection in early March, said Monday it retained a chief restructuring officer to help negotiate with creditors and restructure its $1.5 billion in debt.

Spansion said John P. Brincko, of the Riverside, Calif.-based consultancy Brincko Associates Inc., will help it navigate the Chapter 11 bankruptcy proceedings.

The company has struggled as sinking electronics sales have crippled demand for flash and chip-based memory. Spansion's chips are used in items like digital cameras, cell phones and high-definition televisions.

In January, Spansion said it would restructure its balance sheet and seek a sale or merger, and the next month it announced it would lay off 35 percent of its global work force. Its Japanese unit has also filed for bankruptcy protection, and a debt default has cost it a contract with Taiwan-based ChipMOS, a chip testing and assembly services company.

The company has said it plans to realign its business to focus on flash memory products, Internet Protocol services and the profitable parts of its wireless segment going forward.

"The decision to retain John is one more indication of how committed we are to creating a more manageable debt structure so that we can focus on building a sustainable and profitable business," said Spansion's new chief executive, John Kispert, in a statement.

Spansion's shares rose by a fraction of a penny in Monday trading to about 2 cents per share.