On November 2, 2017, Global A&T Electronics Ltd. ("GATE"), an international provider of semiconductor assembly and test services, announced that it has entered into a global settlement, forbearance, and restructuring support agreement to restructure its outstanding corporate debt. As part of the deal, holders of GATE's existing 10% Senior Secured Notes due in 2019 will receive $540 million of the principal amount of new first lien senior secured notes issued by GATE (the "New Secured Notes"). A subgroup of those senior noteholders who are represented by Lowenstein Sandler in litigation pending in the Commercial Division of the Supreme Court of New York will also receive $15 million of the New Secured Notes and approximately $5 million in cash in addition to their pro rata share of the $540 million.
Lowenstein Sandler filed a lawsuit on behalf of the subgroup of senior noteholders against GATE, its equity sponsors and a class of its second lien noteholders to challenge a debt exchange consummated by GATE in late 2013. The subgroup of senior noteholders alleged that the debt exchange violated the operative indenture and intercreditor agreement, and that the equity sponsors tortiously interfered with those contracts. Although the case was originally dismissed by the trial court, Lowenstein successfully appealed and had the case reinstated by the New York Appellate Division, First Department. GSO Coastline Credit Partners LP v. Global A&T Elecs. Ltd., 142 A.D.3d 858 (1st Dep't 2016). The Lowenstein team representing the subgroup of senior noteholders includes Steven Siesser, Thomas Redburn, Sheila Sadighi, Michael Etkin, Lowell Citron, and Michael Hampson.
