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GT Advanced Technologies Settlement Agreement Approval Sought

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According to the U.S. Bankruptcy Court docket, GT Advanced Technologies (GTAT) filed a motion for entry of an order approving the terms of, and authorizing the Debtors to enter into, a settlement agreement with Meyer Burger. The motion explains, “Prior to the Petition Date, Meyer Burger provided GTAT with several millions of dollars of machinery, equipment, parts, materials, consumables, products, accessories, tooling, diamond wire, and other items (collectively, the ‘MB Equipment’)….GTAT is now in the process of winding down its sapphire growth operations and marketing its ASF Furnaces for sale. In connection with the wind-down process, GTAT is also seeking to monetize the various fabrication equipment and related materials that are of no further use to GTAT’s remaining operations going forward, including the MB Equipment. Meyer Burger has asserted, however, that certain of the MB Equipment, namely 18 units of Brickmaster BM 860s provided to GTAT (the ‘Brickmasters’) (which Meyer Burger asserts have a value of almost $12 million), is property of Meyer Burger After intensive, hard-fought negotiations, GTAT has reached a global settlement with Meyer Burger that, among other things, resolves – in GTAT Corp.’s favor – the ownership dispute with respect to the Brickmasters.”

The motion continues, “At the same time, Meyer Burger waives all reclamation demands against GTAT (with an aggregate amount in excess of $3.7 million) and all administrative expense claims against GTAT (with an aggregate amount in excess of $1.3 million). Under the Settlement Agreement, Meyer Burger’s sole remaining claim against the estates is an allowed general unsecured claim in the aggregate amount of approximately $34.8 million against GTAT Corp. – which represents a material reduction of the more than $48.6 million in claims asserted by Meyer Burger. By resolving all ownership disputes with respect to the MB Equipment, the Settlement Agreement clears the path for GTAT to market and sell the MB Equipment.”

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