Spansion Inc. (CODE)

[Teto71]

Spansion Emerges from Chapter 11 Reorganization
SUNNYVALE, California, May 10, 2010 (PR Newswire Europe)

Company Exits with Significantly Reduced Debt and Strong Cash Position
Leading flash memory solutions provider, Spansion Inc., today announced that it has emerged from Chapter 11 reorganization. During the reorganization, Spansion focused its business on serving embedded and targeted wireless applications, resulting in four consecutive quarters of operating profit and US$225 million in generated cash.
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"We are pleased to have emerged from Chapter 11 a stronger, more focused company. As a result, we are better able to serve our customers," said John Kispert, president and CEO of Spansion, who also pointed to a healthy balance sheet as the foundation for long-term success.
Spansion entered Chapter 11 reorganization with over US$1.5 billion in debt. Today, Spansion emerged a well capitalized company with less than US$480 million in debt and approximately US$230 million in cash, which is supplemented with an undrawn credit line of up to US$65 million. Stockholder's equity was enhanced by a rights offering of approximately US$105 million which is reflected in its cash position.
On March 1, 2009, Spansion filed for Chapter 11 bankruptcy protection. The company submitted its first plan of reorganization on October 26, 2009 and gained approval from the U.S. Bankruptcy Court on its amended disclosure statement on December 22, 2009. Spansion received confirmation from the U.S. Bankruptcy Court for its plan of reorganization on April 16, 2010 and emerged from Chapter 11 protection on May 10, 2010. As a result of Spansion's emergence, Spansion's old common stock has been canceled and no longer trades. Some pre-bankruptcy claims and other administrative matters will remain pending until they are resolved. However, effective as of today, Spansion is no longer under the jurisdiction of the U.S. Bankruptcy Court for the District of Delaware.
"Through the determination of the entire Spansion team, the company has remained focused on serving our customers as we restructured," said Kispert. "Now that the reorganization process is behind us, we look forward to applying even greater energy to ensure our customers' success in their chosen markets."