seekingalpha.com/article/...-of-the-end-for-chapter-11-process
Summary
GTAT's deal with Apple secures the Company's future and sets the Company on the path to exit Chapter 11.
In what appears to be an admission of problems at its end, Apple's claims are limited to a percentage of Mesa furnaces and primed by up to $150M of exit.
We believe GTAT debt is a sure shot winner and the equity has a strong chance of surviving and prospering.
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While the details are still in flux, we believe that GTAT will be able to land the necessary DIP financing and there will not be any significant liquidity issues. We also find it likely that the convertible debt holders will agree to reasonably amend the cross default clauses. With DIP financing, cash from sapphire boule sales from inventory, cash from percentage of Mesa equipment sales, and product sales from other GTAT products, we do not see much of a reason for GTAT to continue in bankruptcy for more than about a quarter. Once the short term issues are resolved, we predict that GTAT will exit the bankruptcy process with a healthier balance sheet. All things considered, one of the most unusual bankruptcies of our time may be coming to a rapid end.
Over the next few weeks, if GTAT can generate sufficient near term cash flow and renegotiate the cross-default clauses with the creditors amicably, which we believe is likely, we predict that the equity is likely to survive this process....