Taiwanese sapphire manufacturer Tera Xtal Technology remained upbeat about claiming payment from the bankrupt U.S.-based MOCVD manufacturer GT Advanced Technology (GTAT), according to a UDN report. Tera Xtal held a press conference on Wednesday under Taiwan’s Gretai Securities Market request to explain to investors the impact from GTAT’s bankruptcy filing.
The International Centre for Dispute Resolution (ICDR), an arm of the American Arbitration Association (AAA) rule GTAT should return payment totaling US $24.29 million for faulty Advanced Sapphire Furnaces (ASF) delivered to the Taiwanese manufacturer.
GTAT has repaid $7 million so far, but without warning filed for bankruptcy protection under chapter 11 of the Bankruptcy Code in the United States Bankruptcy Court for the District of New Hampshire on Oct. 6, 2014. To continue business operations, GTAT filed for bankruptcy protection under chapter 11 instead of chapter 7 that would have resulted in the company’s liquidation.
GTAT plans to continue business operations under its restructure plan because they will continue strategic relations with clients, and there is still room for creditors to negotiate payment methods, said Tera Xtel, adding the company is considering all types of payment solutions, and remains optimistic about reclaiming the payment.
