We were getting a little behind the 1 bankruptcy a day run rate... Undiversified maker of flash memory (of which nowadays you get 16GB for free with every purchase of toilet paper) Spansion late last night deposited its first day motions in the after hours Chapter 11 drop slot in Delaware bankruptcy court. The company's decision "was made in consultation with an ad hoc consortium of holders of Spansion's $625 million Senior Secured Floating Rate Notes due 2013."
Alas, the company made the biggest faux pas of any free fall bankruptcy candidate and did not have a DIP in hand at time of filing: good luck getting one now. "The company is in discussion with the ad hoc consortium about providing a debtor-in-possession (DIP) credit facility, while also simultaneously pursuing other options intended to provide the company with additional liquidity for its long-term cash needs." The reason for the delay is because apparently "the company believes that its current and anticipated cash resources will be sufficient to pay its expenses and maintain its business operations while it explores and implements options to address its long-term cash needs." Luckily they did not add that Flash RAM is also "not" a discretionary purchase.
Legal counsel to advise Spansion on the marketability of its "revolutionary" MirrorBit NOR and ORNAND technology is Latham & Watkins. The financial advisor feasting on this new carcass has surprisingly not been named yet.
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