Trying to turn things around
Spansion is a US company specialising in making flash memory solutions for the OEM market. It has clearly been hit hard by the global plunge in demand for many high tech products and has filed for Chapter 11 bankruptcy protection in the US.
In summarising the reasons for doing so, Spansion referred to the need to restructure its "burdensome debt obligations" and focus more on markets with "greater profit potential". Can't argue with that. Spansion's Japanese subsidiary requested protection from its creditors last month, but no other countries' operations have apparently followed suit.
"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.
"With our valuable portfolio of industry leading products and technology, we believe Spansion has a promising future," he continued. "By focusing on embedded Flash memory products, IP solutions, and the profitable portions of the wireless segment, we believe Spansion can leverage its diverse product portfolio and customer relationships while we continue our restructuring process and explore opportunities for a strategic transaction."
