Spansion Must Make Reserve For Ex-Unit's $761M Claim

Law360, New York (February 25, 2010, 12:35 PM EST) -- A federal judge has determined that Spansion Inc. should set up a reserve for a $761 million rejection damages claim brought by the flash memory maker’s former unit Spansion Japan Ltd.

Overruling objections by Spansion and its unsecured creditors, Judge Kevin J. Carey of the U.S. Bankruptcy Court for the District of Delaware on Wednesday granted SJL’s bid to force Spansion to treat its rejection damages claim as a general unsecured claim and establish a reserve for that claim.

After the bankruptcy court in November approved...
To view the full article, register now.
Law360 Pro Say Podcast
Check out Law360's new podcast, Pro Say, which offers a weekly recap of both the biggest stories and hidden gems from the world of law.