GT Advanced Technologies Inc (OTCMKTS:GTATQ) filed for bankruptcy protection in 2014 after Apple Inc. (NASDAQ:AAPL) rejected use of sapphire screen material that company produced. Now, it is intending to purse $95 million worth loan to revitalize its disorganized business. The company suffered by setbacks as it worked hard to become a supplier to Apple Inc.
Judge Henry Boroff instructed GT Advanced to pay a commitment fee amounting to $2.85 million to a group of specific bondholders. It is the group that is putting together a financing package for the company. The group outbid a lending partner of TPG for the right to loan to the company, which filed for bankruptcy protection in 2014. TPG wanted to finance Chapter 11 revival. However, GT Advanced bondholders outbid the terms offered by the external lender and were finalized as turnaround lenders.
The recovery indicates returning to normal stage of manufacturer of products like the furnaces. It is a measure that GT Advanced feels requires more than $100 million in loans. Along with it, the proposed bankruptcy protection must be approved and completed by the court. It indicates that the company should exit protection in 2016.
The financial arrangement attracted criticism from U.S. Trustee William Harrington. The protest was made against the provision that would have allowed GT Advanced to pay attorneys for the bondholder group. The provision was rejected and other necessary changes were made to pacify concerns stated by the official committee of federal watchdogs and unsecured creditors.
Members in group
The members in lending group are Whitebox Advisors LLC, Wolverine Flagship Fund Trading Limited, Jefferies LLC, AQR Funds., Aristeia Capital LLC, QPB Holdings Ltd. and Pine River Capital Management LP. Enticed by the prospect to link up with Apple, GT Advanced Technologies Inc (OTCMKTS:GTATQ) spent aggressively to become a maker of sapphire screen from a manufacturer of industrial equipment.