Bankruptcy News

We've summarized the latest docket activity and news for publicly traded companies currently operating under U.S. Bankruptcy Court protection.

Bankruptcy/Chapter 11 / Bonds

Global A&T Electronics Chapter 11 Petition, Plan Filed

Global A&T Electronics (GATE) and 12 affiliated Debtors filed for Chapter 11 protection with the U.S. Bankruptcy Court in the Southern District of New York, lead case number 17-23931. The Company, which provides semiconductor assembly and test services, is represented by Marc Kieselstein of Kirkland & Ellis. GATE is a wholly-owned subsidiary of UTAC Holdings, which is not included in the bankruptcy proceedings. Concurrent with its Chapter 11 petition, Global A&T Electronics also filed with the Court a Joint Chapter 11 Plan of Reorganization (with Technical Modifications) and related Disclosure Statement. A corporate release notes that the Plan has already obtained acceptances from more than 99% of holders of the Company's 10% Senior Secured Notes due in 2019 issued in February 2013 and more than 99% of holders of the Company's 10% Senior Secured Notes due in 2019 issued in November 2013. According to the Disclosure Statement, "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."

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