GT Advanced amended Apple deal includes payment, collateral options

By Kali Hays

New York, Dec. 19 – GT Advanced Technologies Inc. released additional details of its amended settlement agreement with Apple Inc. in an 8-K filed Friday with the Securities and Exchange Commission.

As previously reported, the settlement calls for the wind-down of GT’s sapphire production business and allows a claim from Apple of $439 million.

Amendments to the agreement include a provision allowing that Apple’s claim will be “deemed satisfied in full” if Apple receives payments totaling $395.1 million by June 30, 2015 or payments equal to an amount between $395.1 million and $429 million from July 1, 2015 through Dec. 31, 2017, “calculated by linear interpolation.”

GT will also be able to secure debtor-in-possession financing using assets at its Mesa, Ariz., facility as collateral. Apple’s security interest in the collateral will be subordinated to the DIP financing up to $150 million and Apple will release GT from any restrictions related to the sale of the facility assets, according to the 8-K.

Merrimack, N.H.-based GT Advanced Technologies is a provider of equipment and services that support the growth of the solar and LED industries. The company filed for bankruptcy on Oct. 6 under Chapter 11 case number 14-11916.

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