GT Advanced Technologies announced that the Company was commencing a process to solicit participation in a proposed debtor-in-possession term loan facility by eligible holders of the Company’s previously-issued convertible notes.
The process is being conducted in connection with a commitment letter, dated March 17, 2015, between the Company and certain holders of the convertible notes. The U.S. Bankruptcy Court approved this solicitation process on April 2, 2015, and the Company anticipates that the D.I.P. loan facility will provide for loans in an initial aggregate principal amount of $95 million and will provide for, or permit, a letter of credit facility providing for the issuance of letters of credit with the aggregate face amounts outstanding not to exceed $15 million.
The Company anticipates using the proceeds of the D.I.P. facility to fund working capital requirements, pay costs, fees and expenses incurred in connection with the facility and the transactions contemplated thereby and pay other costs and expenses with respect to the administration of the Company’s and certain of its subsidiaries’ Chapter 11 cases.
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