Electronics Production | January 19, 2009
Spansion is up for sale
It is rumoured that the chip manufacturer is close to insolvency. This comes after the company announced that it has been "exploring strategic alternatives, including, but not limited to, opportunities to merge with or sell to similar U.S. or foreign businesses".
These strategic alternatives would be designed to build on Spansion's position as a supplier of NOR flash memory by creating significantly greater scale and to provide Spansion's customers with a broader range of more cost effective memory solutions. Spansion has engaged Barclays Capital to assist the company in exploring these strategic alternatives. Spansion also announced that in connection with the exploration of strategic alternatives it has initiated discussions to begin an organized process of potential balance sheet restructuring opportunities. In anticipation of this process, Spansion has decided to delay making the interest payment on its outstanding 11.25% Senior Notes due 2016, which is due January 15, 2009. Under the indenture governing the 11.25% Notes, a failure to make an interest payment is subject to a 30-day cure period. Spansion had announced in June 2008 a restructuring scheme; 500 of its approximately 9500 were laid off. Rumours have it that a possible merger partner could be Numonyx. However, the company has made no statements or news announcement that suggests any interest in buying or partnering with Spansion.