Bankruptcy filings paint a picture of GTAT debt

So far, more than $3.5m owed to N.H. companies


Published:

The bankruptcy of GT Advanced Technologies has left a trail of debt around the world, including more than $3.5 million in its home state of New Hampshire, according to the first detailed look at the company’s finances since it filed for Chapter 11 reorganization on Oct. 6.

Filings by 10 affiliates of the Merrimack-based company show that both the company’s assets and liabilities at the time of the bankruptcy, previously estimated at $1.5 billion and $1.3 billion, were actually $1 billion a piece.

Most of that debt was due to a failed attempt to supply technology giant Apple with sapphire for its mobile devices, mostly produced at a plant in Arizona.

GTAT owes Apple $439 million as a prepayment, and it also borrowed $434 million in bonds. GTAT, which is winding down its Arizona operations, is hoping the bankruptcy court will approve a settlement that would allow it to pay Apple back first by selling the furnaces, but the bondholders and the creditors committee are scrutinizing the deal. The bankruptcy court is scheduled to hold a hearing on Dec. 10.

The financial filings also list $129 million in other debt, some related to the Apple operations, and the rest for the company’s other operations, which consist of selling equipment companies that allow them make material mostly used in solar cells and LED lighting.

This is less than the $145 million that the company originally estimated in bankruptcy court, but claims may continue to trickle in.

The deadline for submitting those claims (set over Thanksgiving weekend) is Jan. 26.

A small portion of claims listed don’t provide their size and simply say they are “undetermined.”

Of those with dollar amounts, the biggest debtors are in Asia. For instance, there is a claim of $6 million from Hebei Hengbo Fine Ceramics Material in Handan City in China and a $4.2 million claim from the Sanmina Corp. in Suzhou China. (Sanmina also has a facility in Manchester.)

But there are claims from New Hampshire as well. In the Granite state, there are about 90 creditors with claims of about $3.5 million. Will-Mor Manufacturing, a machining company in Seabrook, is the largest New Hampshire creditor so far, with $875,966 in claims.

More news you might be interested in

New Hampshire home, condo sales take big falls in September

But single-family home median price rises by 9.2 percent

NH gets mixed reviews on energy efficiency

Residential performance is good, but not when it comes to vehicles

MyMedicalShopper CEO heads to White House to aid health cost-comparison effort

Administration said to eye ‘big bold transparency initiative‘

Ex-president sues Perspecta Trust for discrimination

Alleges he was let go after revealing treatment for anxiety, depression

Report: Disparities persist for New Hampshire women

Edit ModuleShow Tags
Edit ModuleShow Tags