Spansion senior secured debt facility with Barclays Bank extended

By Lisa Kerner

Charlotte, N.C., April 1 - Spansion Inc. received court approval to extend the termination date on its senior secured debt facility with Barclays Bank plc to May 10 from April 10, according to a Thursday filing with the U.S. Bankruptcy Court for the District of Delaware.

As previously reported, the amendment is subject to payment of a $450,000 fee to the lenders, the company depositing cash into an escrow account to pay the maximum amount of interest that would accrue on the loans through the extended termination date and the extension of the availability to the borrower of the proceeds from the rights offering.

In requesting the extension, Spansion said it was needed in light of delays in confirmation of the company's plan of reorganization.

The court indicated at a March 23 hearing that it would not issue a written decision on issues raised at the plan confirmation hearing until at least March 26.

Spansion said previously that assuming the court decides to confirm the plan, the company and other parties in interest might need to draft and submit an order that conforms to the court's decision.

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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