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Global A&T Electronics Bankruptcy Plan Confirmed

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The U.S. Bankruptcy Court approved Global A&T Electronics’ Disclosure Statement and concurrently confirmed its Joint Chapter 11 Plan of Reorganization.

According to documents filed with the Court, “The Plan provides for a comprehensive restructuring of the Debtors’ obligations, preserves the going-concern value of the Debtors’ business, maximizes recoveries available to all constituents, provides for an equitable distribution to the Debtors’ stakeholders, and protects the jobs of more than 10,000 employees. More specifically, and as described in greater detail in the Disclosure Statement, the Plan provides for, among other things, the issuance of approximately $665 million in new 8.5% secured notes due 2022 to holders of GATE’s Initial Notes (i.e., ‘Old’ Notes) and Additional Notes (i.e., ‘New’ Notes), the guarantee by the ‘UMS’ business held by GATE’s equity owner, UTAC Holdings Ltd., of such new secured notes, the issuance of approximately 31 percent of the common equity in UTAC Holdings Ltd. to GATE’s ‘New’ bondholders, the settlement of long-standing litigation against the Debtors and their equity sponsors, and, following the effective date, UMS and GATE will be operated by a single management team and owned by UTAC Holdings Ltd.”

This semiconductor manufacturer and tester filed for Chapter 11 protection on December 17, 2017, listing $1.4 billion in pre-petition assets.