GT Advanced renews request for payment of DIP financing lender fees

By Caroline Salls

Pittsburgh, March 5 – GT Advanced Technologies, Inc. filed an amended motion to pay a work fee, alternative financing fee and lender expenses in connection with TPG Specialty Lending, Inc. and affiliate TAO Finance 2, LLC’s commitment to provide $100 million in senior secured super-priority debtor-in-possession financing, according to a Thursday filing with the U.S. Bankruptcy Court for the District of New Hampshire.

As previously reported, the court denied the company’s March 2 motion for payment of a $2 million work fee, a fee of 4% of the total committed amount, minus the amount of the work fee, payable if the company closes on any alternative debt or equity financing and up to $600,000 of TPG’s expenses.

The amount of fees and expense reimbursement is the same in the amended motion as in the original request.

GT Advanced said TPG’s commitment is conditioned on court approval of the fees and expenses by March 18, extended from March 10. The company said that is the only change in the amended motion.

According to the filing, the fee motion is the first stage of a two-stage process in obtaining DIP financing. If the fees and expenses are approved, the company will file a motion for approval of the DIP financing soon after the fee payment order is entered.

The court said in the March 3 order denying the fee payments that it would reconsider the motions for approval of the various payments and approval of the financing if revisions were filed no later than March 5.

A hearing on the revised motion is scheduled for March 18.

At that hearing, the court said it will also consider the resolution of any difficulties presented by a connection between GT Advanced counsel and the proposed DIP lender.

James T. Grogan III of Paul Hastings LLP disclosed in a court filing that Paul Hastings represents TPG Capital LP and related entities, including TPG Specialty Lending, in connection with some financing transactions.

Grogan said Paul Hastings would not represent TPG in connection with the GT Advanced DIP financing, and will not represent either party in connection with any related lawsuits or arbitration.

Merrimack, N.H.-based GT Advanced Technologies is a provider of equipment and services that support the growth of the solar and LED industries. The company filed for bankruptcy on Oct. 6 under Chapter 11 case number 14-11916.

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