Flash Maker Spansion Files for Bankruptcy Protection
Spansion became the second major chip maker to file for bankruptcy protection during the global recession after the company failed to meet interest payments on a bond in mid-January.
The company on Sunday said the filing will give it time "to restructure its burdensome debt obligations" and focus more on products with greater profit potential. Spansion has enough money to continue normal business operations while it explores options to meet its long term cash needs, it said.
Spansion's filing makes it the second major chip maker to file for protection from its creditors after German DRAM maker Qimonda made a similar filing in January. A memory chip glut sent prices down over a year and a half ago, causing many chip makers to post losses. The global recession has made matters worse by hurting demand and making it harder for companies to secure loans.
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