GT Advanced requests court OK to enter into $37.46 million settlement

By Mark Reccek

Bethlehem, Pa. Jan. 20 – GT Advanced Technologies Inc. requested court authorization to enter into a global settlement with Manz China Suzhou Ltd. and Manz AG in the amount of $37.46 million, according to a motion filed Tuesday with the U.S. Bankruptcy Court for the District of New Hampshire.

The settlement resolves all disputes between the parties, the motion said.

Pursuant to the settlement, Manz China will receive an allowed administrative expense claim of $375,000, allowed secured claim of $31,083,300 and an allowed general unsecured claim of $1.6 million. Also, Manz Germany will receive an allowed general unsecured claim of $4.4 million

The company said the settlement avoids the prospect of ongoing, costly litigation.

“While the debtors believe that their litigation claims against Manz are viable, there can be, of course, no guaranty of success,” the motion said. “Regardless, litigation with Manz would likely be prolonged and expensive, and would raise a number of complex legal issues including the argument raised by Manz that Swiss law governs its transactions with GT Hong Kong.”

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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