Flash memory drive maker Spansion Inc. says it is seeking bankruptcy protection.
The Sunnyvale, Calif.-based company said in a statement Sunday it plans to reorganize under Chapter 11 bankruptcy as it attempts to restructure $625 million in senior secured debt under court protection.
Spansion says it has enough cash on hand to pay expenses and remain operational during the restructuring.
Spansion's memory drives are used in digital cameras and other electronic devices. The company, founded in 1993, was a joint venture between chip-maker Advanced Micro Devices Inc. and Fujitsu Ltd.
Spansion has been criticized this past week after they laid off 3,000 workers but gave pay increases to their top executives.
Copyright AP - Associated Press
