Melting flash mem giant Spansion files for Chapter 11
Melting flash mem giant Spansion has filed for Chapter 11 bankruptcy, less than a week after suddenly axing 35 per cent of workforce.
Meanwhile, Spansion CEO Bertrand Cambou has vowed to return the $403,000 in severance he received after leaving the company in early February, telling a local newspaper he's "literally in tears" over the 3,000 workers cut loose without pay.
On Sunday, the company said it had filed for bankruptcy protection in an effort to "restructure its burdensome debt obligations and intensify its focus on market segments with greater profit potential." Those debt obligations come to $625 million.
"Given our focus on Spansion's future, management and the board have concluded that chapter 11 provides the most effective means for Spansion to preserve its business, meet its post-petition obligations and maintain customer confidence and continuity while we complete this restructuring," reads a canned statement from new president and CEO John Kispert.
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