Spansion shareholders denied official committee representation

By Caroline Salls

Pittsburgh, Dec. 18 - Spansion Inc.'s informal committee of equity security holders' request for official committee representation was denied Friday by judge Kevin J. Carey of the U.S. Bankruptcy Court for the District of Delaware.

Carey said in his ruling that the equity holders did not meet its burden of proving that they stand to receive a distribution in Spansion's bankruptcy case.

In addition, the judge said the equity holders are already adequately represented, without the need for appointment of an official committee.

According to the filing, the equity holders said they were not adequately represented, especially in the company's plan confirmation process.

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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