GT Advanced: No intercompany claims deal reached; fire hits facility

By Caroline Salls

Pittsburgh, June 1 – GT Advanced Technologies Inc. was unable to reach a settlement regarding its intercompany claims, according to an 8-K filed Monday with the Securities and Exchange Commission.

Between May 14 and May 31, GT’s management held talks with restricted backstop lenders, the official committee of unsecured creditors for its bankruptcy case, the independent director of GT Advanced Technologies Ltd. and Citigroup Financial Products regarding the principal terms to be included in a global settlement of a variety of intercompany issues between company subsidiaries GTAT Corp. and GT Advanced Technologies Ltd.

GT Advanced Technologies Inc. said it provided a proposed term to the parties on May 20.

The restricted parties provided a response and counterproposal on May 22, and Citigroup submitted a counterproposal on May 27.

In addition, GT said in a news release that a fire occurred at its former sapphire manufacturing facility in Mesa, Ariz., on May 26. GT said it leases the facility from Apple.

The company said it is in the process of assessing any damage that may have occurred to the equipment located in the building to determine whether it may have suffered a significant loss.

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 in the U.S. Bankruptcy Court for the District of New Hampshire under Chapter 11 case number 14-11916.

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