GT Advanced furnace sale settlement extinguishes $439 million claim

By Caroline Salls

Pittsburgh, Nov. 4 – GT Advanced Technologies Inc. requested court approval of a settlement reached with Apple Inc. and Apple’s Platypus Development LLC affiliate under which GT Advanced will sell advanced sapphire furnaces (ASF) and related equipment located at its facility in Mesa, Ariz., and a $439 million claim against GT Advances will be extinguished.

According to a motion filed with the U.S. Bankruptcy Court for the District of New Hampshire, GT Advanced will also abandon Mesa ASF and related equipment not sold and/or removed from the facility, make conforming changes to an intercompany agreement and modify its debtor-in-possession facility to avoid a default arising from entry into the settlement agreement.

The company said a December 2014 settlement agreement requires GT Advanced to turn the Mesa facility over to Apple by Dec. 31.

The auction for the furnaces will be completed by Nov. 23, and the proceeds from the sale will be split evenly by GT Advanced and Apple.

A hearing is scheduled for Nov. 19.

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.

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