Spansion looks to form new Japan unit, provide start-up funding

By Caroline Salls

Pittsburgh, Nov. 30 - Spansion Inc. requested court approval to form and provide $8.4 million of initial financing for a new Japanese subsidiary, according to a Wednesday filing with the U.S. Bankruptcy Court for the District of Delaware.

The new subsidiary would be a wholly owned subsidiary of its Spansion LLC debtor.

The company said the financing would be used by the new subsidiary for initial start-up costs and operating expenses for its first two months.

Spansion said its business relationship with Spansion LLC wholly owned subsidiary Spansion Japan Ltd. has deteriorated since the latter filed for creditor protection.

Despite efforts to preserve this relationship, the company said Spansion Japan will not continue to supply wafers used in creating its finished products beyond Dec. 2, putting its sales revenues in Japan at risk.

A hearing is scheduled for Dec. 15.

Spansion, a Sunnyvale, Calif.-based maker of flash memory products, filed for bankruptcy on March 1, 2009. Its Chapter 11 case number is 09-10690.

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