Spansion Noteholders Balk At $70M Samsung IP Deal

Law360, New York (May 13, 2009) -- A group of Spansion Inc. noteholders is asking the bankruptcy court to withhold approval of a $70 million settlement between the technology company and rival Samsung Electronics Co. Ltd., arguing that the deal over flash memory technology patents is unfairly skewed toward Samsung and not in the best interests of creditors.

The ad hoc consortium of floating rate noteholders filed a formal objection Tuesday in the U.S. Bankruptcy Court for the District of Delaware, chiding Spansion for agreeing to the settlement...