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Spansion looks to extend Barclays financing termination date 10 days
By Caroline Salls
Pittsburgh, April 26 - Spansion Inc. requested court approval to amend its secured debt facility from Barclays Bank plc to extend the termination date by 10 days and waive a final order condition, according to a Friday filing with the U.S. Bankruptcy Court for the District of Delaware.
Under the credit agreement, the administrative agent is not required to release the proceeds of the term loan facility from the escrow account in which they are being held unless conditions are satisfied or waived.
The conditions include a requirement that the confirmation order be a final, non-appealable order with no appeals to it having been filed. However, Spansion said it believes some parties may appeal the plan confirmation order.
As a result, the company said it has asked the lenders to waive the final order requirement.
In addition, the term loan facility would terminate unless all of the conditions to the release of proceeds from the escrow account have been satisfied or waived by May 10, including the effective date of the plan having been completed by that date.
Assuming that the lenders agree to waive the final order condition and Spansion can promptly satisfy the other conditions to the plan effective date, the company said it expects the plan to take effect shortly after the 14-day confirmation stay period and before the current termination date.
However, the company said it has asked the lenders to extend the termination date by an additional 10 days in order to provide some additional cushion if needed.
Spansion, a Sunnyvale, Calif.-based maker of flash memory products, filed for bankruptcy on March 1, 2009. Its Chapter 11 case number is 09-10690.
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