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Technology Stocks : Spansion Inc. -- Ignore unavailable to you. Want to Upgrade?

To: Joe NYC who wrote (4500)	3/16/2009 10:23:25 PM
From: blind-geezer	Respond to of 4590

Spansion Appoints Chief Restructuring Officer John Brincko to Spearhead Restructuring Efforts SUNNYVALE, Calif., March 16 /PRNewswire-FirstCall/ -- Spansion Inc. (NASDAQ:SPSN), the world's largest pure-play provider of Flash memory solutions, today announced that it has retained John P. Brincko as Chief Restructuring Officer (CRO). Brincko's firm, Brincko Associates, Inc., has been listed as one of the "Outstanding Turnaround Firms" for ten of the past ten years by Turnarounds and Workouts, a leading publication dedicated to restructuring. (Logo: newscom.com As CRO, Brincko will oversee negotiations with Spansion's creditors, including debt-holders, to restructure the company's approximately $1.5 billion in secured and unsecured debt. On March 1, 2009, Spansion voluntarily filed for reorganization under chapter 11 of the U.S. Bankruptcy Code to strengthen its capital structure and focus its business for long-term success. "The decision to retain John is one more indication of how committed we are to creating a more manageable debt structure so that we can focus on building a sustainable and profitable business," said Spansion President and CEO John Kispert. "John has a tremendous track record and we are expecting him to play a key role in revitalizing Spansion." Brincko has more than 35 years of executive, financial and operational management experience. His major assignments have included: CEO of CalComp Technology (Lockheed Martin publicly held subsidiary); president and COO of Barneys New York; CEO of Mossimo, Inc.; CEO of Knudsen Foods, Inc. and Foremost Dairies; CEO of Consolidated Freightways; CEO of Strouds, Sun World International, Inc., Globe Security, PCL Industries, Ltd.; and CRO of Franchise Pictures, VANS and many others. Brincko has also held executive management positions with Max Factor, American Home Products, International Paper Company, Peat, Marwick, Mitchell and Grey Advertising. Spansion, Spansion LLC, Spansion Technology LLC, Spansion International, Inc. and Cerium Laboratories LLC filed their voluntary petitions for relief under chapter 11 in the U.S. Bankruptcy Court for the District of Delaware.

To: Joe NYC who wrote (4500)	3/21/2009 10:50:06 AM
From: Pam	3 Recommendations Respond to of 4590

But with it, if the bottom didn't fall from under the entire market at the worst possible time for Spansion, but, Spansion would have been the one (maybe the only one) standing. That is part of the job of a company executive to foresee risks and exercise caution especially when you are so levered! There was absolutely no chance that Spansion would have been the only one standing even if the economy was doing good! If you have followed the memory industry long enough, you should know that companies have been in business for years despite losing money for years! I am ok with firing, but not ok with resignation. That to me means deserting ones post in the middle of the worst storm. Well, when you are that high up, and you have a board that has supported you all the way, they don't fire you, they ask you to tender in your resignation. I don't think he decided to quit on his own, he was forced out. Spansion was more leveraged than others, and that is the reason for bankruptcy. Sometimes the leverage works, other times it does not. The worst possible scenario is for market to collapse when you are at your lowest cash level, which is what happened. Additionally, the credit markets collapsed at the same time and some of the cash the company thought it had (the UBS note) turned out not to be a marketable security. So it turned out to be a perfect storm for Spansion. You can think what you want and continue defending management actions but the results are in and it is clear that poor executive decisions and excessive risk taking, at a time the company couldn't afford to, has resulted in a complete collapse of a technologically stronger company in the NOR space!