Bankrupt Spansion In Talks To Sell Assets

(Reuters) – Spansion Inc (SPSN.O), bankrupt maker of flash memory chips, said it was in talks with multiple companies regarding the potential sale of some or all of its assets.

In a statement, the company said the talks were part of its restructuring process.

Spansion also reported fourth-quarter net sales of $468 million and expects net sales of about $400 million for the first quarter of 2009.

However, the company said the results and outlook were preliminary and subject to change as it is currently conducting an impairment assessment of its fixed assets, goodwill and long-lived intangible assets which could result in material non-cash charges. The company, which sought bankruptcy protection earlier this month hurt by falling chip prices and a deepening recession, said it expects to meet its post-petition obligations.

The case is In re: Spansion Inc, U.S. Bankruptcy Court, District of Delaware, No. 09-10690. (Reporting by Santosh Nadgir in Bangalore; Editing by Amitha Rajan)