Create a free Manufacturing.net account to continue

Spansion’s Japanese Unit Files For Bankruptcy

One of the world's largest makers of flash memory chips used in digital cameras and other gadgets said its Japanese subsidiary, Spansion Japan Ltd., has filed for bankruptcy.

SUNNYVALE, Calif. (AP) -- Spansion Inc., one of the world's largest makers of flash memory chips used in digital cameras and other gadgets, said Tuesday its Japanese subsidiary, Spansion Japan Ltd., has filed for bankruptcy.

The parent company said that its Japanese operations voluntarily chose to obtain protection from its creditors while it continues operating during its restructuring efforts.

This action will not "materially affect" global operations, and does not include any of Spansion's other subsidiaries or their operations outside of Japan, it said.

Separately, Spansion said it remains in "active discussions" with an ad hoc committee representing holders of its $625 million senior secured floating rate notes, due 2013, about restructuring the company's balance sheet and "potential strategic transactions."

Last week, Spansion's president and chief executive, Bertrand Cambou, resigned as the chip company looks for a suitor. Spansion said last month it was looking for a buyer or merger partner.