The U.S. Bankruptcy Court approved GT Advanced Technologies’ (GTAT) motion for an order (i) authorizing the Debtors to pay certain unaffiliated holders of convertible notes (collectively, the backstop lenders) (a) a put option premium equal to 3.0% of committed amount of the $95 million D.I.P. facility and (b) certain expenses of the backstop lenders incurred in connection with the D.I.P. facility and certain expenses of the ad hoc group of unaffiliated holders of convertible notes incurred since commencement of the Chapter 11 cases and (ii) approving GT Advanced Technologies’ information sharing obligations and certain indemnity obligations under the commitment letter.
As previously reported, “GTAT’s submits that (i) authorization to pay the Put Option Premium and to reimburse the Expenses and (ii) approval of the Information Sharing Obligations and the Indemnity is warranted and appropriate under the circumstances. Given GTAT’s dedication to an expeditious restructuring and need for DIP financing, payment of the Put Option Premium, reimbursement of the Expenses (that are or become payable prior to the Closing Date (or regardless of whether the Closing Date occurs) subject to the terms of the Commitment Letter), the Information Sharing Obligations, and the Indemnity as a condition to proceeding with its efforts to obtain DIP financing is efficient, necessary, and will not prejudice the legitimate interests of creditors and other parties in interest. Because the Backstop Lenders’ DIP financing commitment would lapse if the Put Option Premium, the reimbursement of the Expenses, the Information Sharing Obligations, and the Indemnity are not approved, GTAT also respectfully requests that the Motion be granted effective immediately and that the Court order that no stay apply pursuant to Bankruptcy Rule 6004(h).”
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