Spansion unit buys claim rights for $29 million; shares distributed

By Caroline Salls

Pittsburgh, May 3 - Spansion Inc. wholly owned subsidiary Spansion LLC entered into a purchase agreement with SL Capital Appreciation Fund, LLC, Silver Lake Sumeru Fund, LP and Silver Lake Credit Fund, LP under which Spansion LLC will purchase all of the rights to claims against the Spansion Inc. debtors for $29 million, according to an 8-K filed with the Securities and Exchange Commission.

The sale is subject to bankruptcy court approval.

According to the 8-K, Spansion Inc. reserved 46.25 million unregistered shares of class A common stock for issuance on the effective date of its plan of reorganization to satisfy the claims of some unsecured creditors.

On Monday, the company distributed 1.56 million of the shares to holders of unsecured claims and Spansion LLC senior notes as part of a ninth distribution to these creditors.

The ninth distribution consisted of 453,535 shares distributed to the senior notes trustee, 392,707 shares distributed to unsecured creditors and 732,369 shares distributed to Spansion LLC in connection with purchased claims.

The 732,369 shares tied to purchased claims will be cancelled, according to the 8-K.

Spansion, a Sunnyvale, Calif.-based semiconductor device company, emerged from bankruptcy on May 10, 2010.

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