December 15, 2014
Partner James S. Carr is quoted in the Law360 article “GTAT Placates Creditor Worries Over $439M Apple Deal.” The article reports that Apple Inc. modified a settlement with GT Advanced Technologies Inc. to gain the support of the bankrupt company’s creditors who worried that the agreement was exceedingly generous to the tech giant. As an alternative to a settlement, GTAT’s creditors had looked into the company’s chances of winning damages on breach-of-contract, lender-liability and antitrust theories. GTAT’s claims, however, were “very fact-intensive and would be very difficult to prove,” Mr. Carr says. Therefore, GTAT is finalizing a settlement with Apple, which will deliver more short-term liquidity to the company by deferring or reducing payments to Apple, and give an opportunity for GTAT to receive financing it needs to attempt a recovery from bankruptcy.
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