Creditors Aim To Block Spansion's Japanese Deal

Law360, New York (January 28, 2010, 1:41 PM EST) -- The unsecured creditors of bankrupt flash memory chip maker Spansion Inc. have said a settlement between the company and Spansion Japan Ltd. should be blocked because it transfers approximately $346 million to the Japanese subsidiary when they believe it should receive nothing.

In an objection filed Wednesday in the U.S. Bankruptcy Court for the District of Delaware, the committee of unsecured creditors said that although Spansion claims that the settlement will pay Spansion Japan only 10 percent of the amount the subsidiary is seeking, the details...
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