Spansion granted interim approval of stock trading restrictions

By Caroline Salls

Pittsburgh, March 11 - Spansion Inc. obtained interim court approval of the notice, hearing and sell-down procedures for trading the company's securities, according to an 8-K filed Wednesday with the Securities and Exchange Commission.

Under the trading procedures, any beneficial owner of at least 7.67 million shares or options to acquire shares of the company's common stock must file notice of their ownership status with the bankruptcy court within 20 days of notice of entry of the interim order or within 10 days of becoming a substantial shareholder.

Substantial stockholders must also file notice of any transfer of equity securities at least 30 days before the proposed transfer. Spansion will then have 30 days to object to the transfer.

If the company does object, the transfer cannot be completed without court approval.

A final hearing is scheduled for March 23.

Spansion, based in Sunnyvale, Calif., makes flash memory products. The company filed for bankruptcy on March 1 in the U.S. Bankruptcy Court for the District of Delaware. Its Chapter 11 case number is 09-10690.

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