Case: 14-11916-HJB Doc #: 2114 Filed: 07/22/15 Desc: Main Document Page 1 of 6 UNITED STATES BANKRUPTCY COURT DISTRICT OF NEW HAMPSHIRE In re: GT Advanced Technologies, Inc., et al, Debtors 1 Chapter 11 Case No. 14-11916-HJB Jointly Administered UNITED STATES TRUSTEE S STATEMENT IN CONNECTION WITH SUBMISSION OF THE PROPOSED ORDER PURSUANT TO BANKRUPTCY CODE SECTIONS 105, 361, 362, 363(b), 363(c), 363(e), 364, 503(b), AND 507 AND BANKRUPTCY RULES 2002, 4001, 6004(h), AND 9014: (I) AUTHORIZING DEBTORS TO OBTAIN POSTPETITION FINANCING;(II) GRANTING LIENS AND SUPER-PRIORITY CLAIMS; (III) AUTHORIZING DEBTORS TO PAY PUT OPTION PREMIUM AND EXPENSES IN CONNECTION WITH POSTPETITION FINANCING COMMITMENT; (IV) APPROVING INFORMATION SHARING OBLIGATIONS AND INDEMNITY THEREUNDER; AND (V) GRANTING RELATED RELIEF. [COURT DOCKET NO. 2107] TO THE HONORABLE HENRY J. BOROFF UNITED STATES BANKRUPTCY JUDGE: Pursuant to 28 U.S.C. 586, 11 U.S.C. 105, 361, 362, 363, 503 and 507, William K. Harrington, the United States Trustee for Region 1 ( United States Trustee ), respectfully submits this Statement in Connection with Submission of the Debtors Proposed Order Authorizing Debtors to Obtain Post Petition Financing; Granting Liens and Super-Priority 1 The Debtors in these chapter 11 cases, along with the last four digits of each Debtor s tax identification number, as applicable, are: GT Advanced Technologies Inc. (6749), GTAT Corporation (1760), GT Advanced Equipment Holding LLC (8329), GT Equipment Holdings, Inc. (0040), Lindbergh Acquisition Corp. (5073), GT Sapphire Systems Holding LLC (4417), GT Advanced Cz LLC (9815), GT Sapphire Systems Group LLC (5126), and GT Advanced Technologies Limited (1721).
Case: 14-11916-HJB Doc #: 2114 Filed: 07/22/15 Desc: Main Document Page 2 of 6 Claims and Authorizing Debtors to Pay Put Premium; and Approving Information Sharing Obligations ( Financing Motion ) [Court Docket No. 2107]. 1. Counsel for the United States Trustee was present at the July 20, 2015 hearing on the Debtors Financing Motion (the Hearing ). At the Hearing, the Court indicated that it would not enter an Order authorizing the Backstop Lenders to have a lien on the Avoidance Actions. 2. Late in the evening on July 20, 2015, counsel to the Backstop Lenders circulated a revised form of Order to certain parties present at the hearing on Monday, July 20, 2015. 3. On the morning of Tuesday July 21, 2015, counsel to the United States Trustee and others noted that allowing the Backstop Lender to have a superpriority claim on the Avoidance Actions violated the spirit of the Court s comments. The United States Trustee continues to maintain that having a superpriority claim on Avoidance Actions is the functional equivalent of a lien on Avoidance Actions. 4. Thereafter, the Debtors submitted the proposed Order for the Court s review, noting that the Debtors have not received final sign-off from the United States Trustee on the form of Final Order. The United States Trustee has raised an issue as to whether the revised form of Final Order accurately reflects the Court s direction that the DIP Lenders not receive a lien on Avoidance Actions or proceeds thereof. See Court Docket No. 2107, pages 2-3. 5. To the extent the language granting the Backstop Lenders a superpriority claim on Avoidance Actions remains in the proposed Order, the United States Trustee objects to entry of the same. The section of the proposed Order at issue is generally found on Court Docket No. 2107-1, pages 11-12, D.8: 2
Case: 14-11916-HJB Doc #: 2114 Filed: 07/22/15 Desc: Main Document Page 3 of 6 6. The United States Trustee submits this Statement in connection with the Debtors Proposed Order [Court Docket No. 2107] for the Court s review. 3
Case: 14-11916-HJB Doc #: 2114 Filed: 07/22/15 Desc: Main Document Page 4 of 6 Respectfully submitted, WILLIAM K. HARRINGTON, UNITED STATES TRUSTEE By: /s/ Geraldine Karonis Geraldine Karonis Assistant United States Trustee Office of the United States Trustee 1000 Elm Street Suite 605 Manchester, NH 03101 (603) 666-7908 Bnh 01853 Dated: July 22, 2015 CERTIFICATE OF SERVICE I hereby certify that on this date a copy of the foregoing was forwarded to all parties on the attached list via CM/ECF unless as otherwise indicated: 14-11916-HJB Notice will be electronically mailed to: Jason R. Adams Christopher J. Allwarden David P. Azarian Bryan Bagdady Holly Barcroft David L. Barrack Andrew Behlmann Mark I. Bernstein G. Alexander Bongartz J. William Boone Ryan Borden Eric K. Bradford Peter Breslauer Christopher M. Candon James S. Carr Rosanne Ciambrone Donald Cram Keith Cunningham Eleanor Wm Dahar Matthew Delude Daniel M. Deschenes Ann Marie Dirsa Christopher M. Dube Lawrence Edelman 4
Case: 14-11916-HJB Doc #: 2114 Filed: 07/22/15 Desc: Main Document Page 5 of 6 Marita Erbeck Michael Etkin Jeremy R. Fischer Andrew Flame Christopher Floyd Edmond J. Ford Kelly J. Gagliuso William S. Gannon Dustin N. Gauthier Matthew Gensburg Steven Ginther Matthew Gold Lawrence B. Gormley Steven E. Grill James T. Grogan, III Honor S. Heath Andrew Helman Camden B. Hillas Gary T. Holtzer Nancy Isaacson Michael D. Jankowski Matthew R. Johnson Brad M. Kahn Michael S. Kalis Robert Keach Martin Kedziora Ryan F. Kelley Susheel Kirpalani Lisa Kresge James Laboe James S. LaMontagne Robert J. Lemons Colin P. Maher Robert Malone Jason Manekas Jacob Manheimer David M. Mannion Benjamin E. Marcus George Marcus Alan Maza Marc McDonald Peter McGlynn Joseph McMahon, Jr. Frank Mesmer Joshua Mesmer Gregory A. Moffett Steven M. Notinger Paul F. O'Donnell, III Kyle Ortiz Michael W. Ott Thomas J. Pappas Richard C. Pedone Lori L. Pines Steven Pohl 5
Case: 14-11916-HJB Doc #: 2114 Filed: 07/22/15 Desc: Main Document Page 6 of 6 Charles R. Powell, III John Ramirez Jennifer Raviele Bronwyn L. Roberts Jennifer Rood Peter C.L. Roth Jennifer Roussil Katherine Scherling Sage M. Sigler James Singer Daniel W. Sklar Robert A. Soriano Jeffrey C. Spear John M. Sullivan Ryan D. Sullivan Peter N. Tamposi Lisa Snow Wade Michael F. Walsh Christopher Ward Jason H. Watson John Robert Weiss Jack S. White Eric Wilson James M. Wilton Robert E. Winter Dated: July 22, 2015 /s/ Geraldine Karonis Geraldine Karonis 6