Chipmaker Spansion Files for Bankruptcy
SUNNYVALE, Calif. -- Struggling flash memory maker Spansion(SPSN Quote) 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, one of the world's largest makers of chips used in digital cameras, cellphones and high-definition televisions, said it would slash its global work force by 35%, 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. ...
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