“Traders are being drawn to bankrupt GT Advanced Technologies Inc. bonds by the prospect of lawsuits to recover money from Apple Inc. and other creditors, lifting the value of lower-ranking debt, according to analysts,” Linda Sandler and Dawn McCarty report for Bloomberg.
“Bonds of GT Advanced, a maker of synthetic sapphire, are currently at around 45 cents on the dollar. They might rise if Apple is forced to give up some of its $439 million in claims, and if litigation takes back $56 million paid to trade creditors just before the bankruptcy, said Joe Sarachek, a managing director at CRT Capital Group LLC in Stamford, Connecticut, which trades bankrupt companies’ debt,” Sandler and McCarty report. “‘This is going to be a field day for the lawyers and accountants,’ he said. Already inching up, the bonds might climb more as disputes are worked out in court, he said.”
“In their filing objecting to the settlement with Apple, a committee of unsecured creditors said the failed sapphire venture cost GT Advanced almost $1 billion. They demanded more information about the proposed accord, saying they didn’t know yet if it was fair and equitable,” Sandler and McCarty report. “The fights with Apple and trade creditors might be resolved at the negotiating table, or in court, Kevin Starke, a CRT analyst, said. A hearing on the settlement is set for Dec. 15 in bankruptcy court in Springfield, Massachusetts.”
Read more in the full article here.
Apple shields information in GT Advanced creditor probe – November 26, 2014
Apple, GT Advanced and the ‘boule graveyard’ – November 20, 2014
Lack of experience, mismanagement doomed GT Advanced’s sapphire adventure – November 19, 2014
GT Advanced Tech creditors chafe at settlement deal with Apple – November 19, 2014
Apple sticking with Arizona plan after sapphire supplier GT Advanced falters – November 18, 2014
Did Apple bully GT Advanced Technologies? – November 11, 2014
GT Advanced COO claims Apple used ‘bait and switch’ tactic – November 7, 2014
Court unseals GT Advanced documents: Apple says it ‘bent over backwards’ to help sapphire supplier – November 7, 2014
GT Advanced blames ‘oppressive and burdensome’ Apple terms in quest to ax sapphire production – October 10, 2014