Information on Corporate Bankruptcy Proceedings in Delaware and Throughout the United States
Introduction
On April 1, 2010, Judge Kevin J. Carey , Chief Judge of the United States Bankruptcy Court for the District of Delaware issued an opinion (the “Opinion“) in the Spansion bankruptcy rejecting the Debtor’s proposed plan of reorganization. This post will look at the requirements provided for under the Bankruptcy Code in…
Introduction
Recently, Judge Kevin J. Carey, Chief Judge of the United States Bankruptcy Court for the District of Delaware, issued a decision in the Spansion bankruptcy denying a motion for the appointment of an official committee of equity security holders. See In re Spansion, Inc., et al., Case No. 09-10690(KJC)(December 18, 2009). The…
Introduction
On June 2, 2009, Judge Kevin J. Carey, Chief Judge of the United States Bankruptcy Court for the District of Delaware, issued an opinion in the Spansion bankruptcy finding that the Debtors’ settlement of various patent cases was not the result of the "sound exercise of the Debtors’ business judgment." Judge Carey’s decision in Spansion is helpful as it provides analysis of what is required in order for a debtor to meet its burden when seeking bankruptcy court approval of a settlement.
Background
Spansion filed for bankruptcy on March 1, 2009. Approximately two weeks after filing for bankruptcy, Spansion entered into a settlement agreement with Samsung Electronics Co. settling two patent infringement cases commenced by Spansion and settling one patent infringement case commenced by Samsung against Spansion. Pursuant to the parties’ settlement agreement, Samsung agreed to pay Spansion $70 million.…
Introduction
On March 1, 2009, Spansion, Inc., (“Spansion”), a manufacturer of semiconductors used to provide “flash memory,” filed for bankruptcy in the United States Bankruptcy Court for the District of Delaware. According to its Affidavit in Support of First Day Motions (the “Affidavit”), Spansion’s chapter 11 bankruptcy includes Spansion Inc., Spansion LLC, Spansion Technology…
