GT Advanced settlement allowing $34.8 million unsecured claim OK’d

By Kali Hays

New York, May 26 – GT Advanced Technologies Inc. received approval of a global settlement with Meyer Burger AG resolving equipment ownership disputes and reducing Meyer’s $48.6 million in claims against the company to $34.8 million, according to a Tuesday order from the U.S. Bankruptcy Court for the District of New Hampshire.

As previously reported, Meyer provided GT with equipment and related tools for use in GT’s sapphire growth project with Apple, Inc. Meyer has since asserted ownership of 18 Brickmaster BM 860s, which GT used for cutting and squaring sapphire materials and Meyer valued at $11.85 million.

Meyer also made various administrative expense claims, reclamation claims totaling $5 million and a general unsecured claim totaling $34.8 million.

Under the settlement, Meyer will withdraw its ownership, reclamation and administrative claims totaling $13.8 million and its general unsecured claim will be allowed in full.

With reclaimed ownership of the Brickmasters, GT will proceed with the marketing and sale of the equipment, according to the motion.

Though GT said it has some valid objections to Meyer’s general unsecured claim, “the amount is fair and reasonable in light of the substantial benefits to be received under the settlement agreement – most importantly, the resolution of all ownership disputes and the elimination of all reclamation and administrative expense claims,” the motion said.

The company went on to say that “the settlement agreement avoids the substantial costs and potentially lengthy litigation with Meyer Burger over the ownership of the Brickmasters (possibly in a Swiss court), during which time GT would effectively be precluded from selling the Brickmasters. Moreover, there is no guarantee that GT would ultimately prevail and, if it did prevail in such litigation, of what damages would be.”

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, 2014 under Chapter 11 case number 14-11916.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.