Financial
At the end of Q2 2010, Spansion reported results for its second fiscal quarter; the company reported both GAAP and non-GAAP results due to the impact of fresh start accounting. On a U.S. GAAP basis, Spansion reported net sales of $255.7 million ($292.7 million on a non-GAAP basis).
Emergence from Chapter 11
After filing a motion with The U.S. Bankruptcy Court for the District of Delaware, in April 2010, Spansion won court approval of its plan to exit bankruptcy and was allowed to reorganize the company.
On May 10, 2010, Spansion emerged out of chapter 11 bankruptcy. Its old common stock was previously deemed to be impaired and then cancelled; the company issued new shares to those to whom it owed money. The company began trading on the New York Stock Exchange on June 22, 2010 under the ticker symbol “CODE.”
Executive pay controversy
John Kispert was named CEO in February 2009, a month before the company's chapter 11 filing. It was understood that Kispert walked into a "no-win situation" according to the local media.
With the company in turmoil and needing to reduce expenses, Spansion laid off 3,000 employees without severance pay on February 23, 2009 CEO John Kispert was given a compensation package that could pay a $1.7 million bonus if he successfully found a buyer for the company or liquidated the company within six months, Kispert never saw this bonus since he opted to file bankruptcy in March 2009. Managers received an 11% increase in pay (negating the effect of an earlier 10% salary cut). The company filed for Chapter 11 bankruptcy on March 1, 2009 amidst growing anger among former employees.
In 2010, a settlement was reached on behalf of former employees of Spansion Inc. whose employment was terminated on or around February 23, 2009. Kispert also instituted a policy of offering any new jobs first to the employees who were fired in 2009.
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