6. Related Party Transactions

Spansion Japan

The following table presents the significant related party transactions between the Company and Spansion Japan for the three and six months ended June 27, 2010:

 

		Three Months Ended June 27, 2010												Six Months Ended June 27, 2010
		Successor								Predecessor				Successor								Predecessor
		Period from May 11, 2010 to June 27, 2010								Period from March 29, 2010 to May 10, 2010				Period from May 11, 2010 to June 27, 2010								Period from December 28, 2009 to May 10, 2010
										(in thousands)
Sales to Spansion Japan		$	4,801							$	24,496			$	4,801							$	78,705
Wafer purchases from Spansion Japan		$	4,357							$	25,432			$	4,357							$	80,160
Payment to Spansion Japan for R&D services		$	143							$	655			$	143							$	2,686

Effective June 27, 2010, Spansion Japan's Plan of Reorganization (POR) was confirmed by the Tokyo District Court. The POR provided for Spansion Japan to redeem shares held by its shareholders without consideration, cancel such shares and issue new shares to unsecured creditors. The redemption, cancellation and new issuance were completed effective September 28, 2010. As a result, Spansion Japan is no longer a related party to the Company.

Silver Lake Sumeru Fund, L.P.

SLS Spansion Holdings, LLC, and its affiliates are holders of greater than 10 percent of the Company's voting securities as of June 26, 2011 and two affiliates of Silver Lake Sumeru Fund L.P. are members of the Company's Board of Directors. On April 30, 2011, the Company entered into a purchase agreement with SL Capital Appreciation Fund, L.L.C., Silver Lake Sumeru Fund, L.P. and Silver Lake Credit Fund, L.P. (collectively, the "Sellers") to purchase all rights with respect to certain claims against the Debtors under the Chapter 11 Cases held by the Sellers that will be settled with Spansion common shares. The aggregate purchase price paid by Spansion for all rights was approximately $29.0 million and was recognized in stockholder's equity as a component of additional paid in capital.

 

The purchase agreement and the transactions thereunder were approved by the non-interested directors of the Company's Board and also by an order of the Bankruptcy Court under the Chapter 11 Cases on May 31, 2011.