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GT Advanced Technologies Agreement, Seal Approval Sought

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According to the U.S. Bankruptcy Court docket, GT Advanced Technologies (GTAT) filed a motion for an order (a) modifying automatic stay, allowing setoff of pre-petition obligations and approving a related customer agreement and (b) authorizing certain Debtors to enter into an inter-company agreement related to the sale of ASF Furnaces.

The motion explains, “This motion seeks two forms of related relief from this Court. First GTAT seeks approval of the First Amendment between GT Hong Kong and customer, pursuant to which the parties will net and set off certain obligations arising under that certain Master Purchase Agreement….Importantly, the resolution of these obligations is a necessary condition to Customer agreeing to perform under the a purchase order for the purchase of ASF Furnaces from GT Hong Kong for an aggregate purchase price of more than $45 million (subject to certain adjustments)….For the avoidance of doubt, GTAT is not seeking Court approval to enter into the new purchase order with the Customer for the purchase of ASF Furnances.”

The motion continues, “Instead, GTAT will merely continue to perform under this prepetition agreement on a postpetition basis…Second, by this Motion, the GT Parties seek authorization to enter into the Intercompany Agreement, pursuant to which GT Hong Kong agrees to compensate the other GT Parties for the benefits GT Hong Kong received under the settlement with Apple and for GTAT Corp’s forbearance from terminating its exclusive license agreement with GT Hong Kong received under the settlement.” GTAT also petitioned the Court to file certain portions of the above motion under seal, explaining, “…GTAT believes that disclosing such information will have a detrimental impact on in its ability to consummate future deals with Customer as well as other customers located in Asia.”

The Court scheduled an April 2, 2015 hearing on the seal motion. Read more bankrupt company news.