GT Advanced equityholder denied request for case trustee or examiner

By Kali Hays

New York, Feb. 4 – GT Advanced Technologies Inc. equity security holder Terren Richard Faloh received a denial of his request that a Chapter 11 examiner or trustee be immediately appointed to protect the company estate from further gross mismanagement, according to a Wednesday order from the U.S. Bankruptcy Court for the District of New Hampshire.

As previously reported, Faloh claims that GT’s current management team, Tom Gutierrez and Dan Squiller, are guilty of fraud, dishonesty, incompetence and gross mismanagement and that a trustee or examiner is necessary to protect the interest of company creditors and equity security holders.

Specifically, Faloh accuses GT’s management of presenting “materially false and misleading” public reports and statements to financial stakeholders, of incompetence by allowing Apple, Inc. employees de facto control of the company’s Mesa, Ariz., facility “where significant production trade secrets and intellectual property was effectively stolen by Apple employees,” and mismanagement by entering into a supplier contract with Apple “obligating the company to expend more resources than it had available.”

“Throughout 2014, the company gave no indication of an impending liquidity crisis and continued making reassuring statements to investors regarding the company’s current cash position, expected cash position and revenues, ability to meet milestones under the Apple agreement, and the progress GT was making developing the Arizona facility,” the motion stated.

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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