Bankruptcy Judge OKs Spansion, SJL Settlement

Law360, New York (February 2, 2010, 5:48 PM EST) -- Bankrupt flash memory maker Spansion Inc. has won approval of a $62.5 million settlement with one-time subsidiary Spansion Japan Ltd., a step the company hopes will smooth the way to its quick emergence from Chapter 11.

Judge Kevin Carey of the U.S. Bankruptcy Court for the District of Delaware approved the settlement Friday. The agreement settles a potential half-billion-dollar administrative expense claim from SJL and removes what had been a major stumbling block to Chapter 11 plan approval, a source said.

The two companies intend to...
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