Meyer Burger Technology has reached a settlement agreement with bankrupt U.S. firm GT Advanced Technologies Inc. (GTAT), which had placed significant orders with the Swiss engineering group before filing for Chapter 11 last year.
Under the agreement, GTAT recognizes the validity of Meyer Burgers claim amounting to $34.8 million. GTAT also agrees to confirm ownership of the Meyer Burger equipment which it agreed to purchase, including Diamond Wire cutting systems, spare parts and diamond wire related consumables.
GTAT filed for Chapter 11 protection under U.S. bankruptcy code in October after a major sapphire deal with Apple Inc. went south, leaving Meyer Burger sitting on a large number of machines ready for delivery as well as diamond wire materials, which the company wrote off. Reporting its 20014 financial results in March, the company said the GTAT bankruptcy took a toll on its bottom line.
Meyer Burger nevertheless managed to lower its net loss by 17% to CHF 134.7 million ($141.8 million) while increasing revenue by 56% to CHF 315.8 million.
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The settlement agreement is subject to the approval by the U.S. Bankruptcy Court for the District of New Hampshire, with a decision expected in June.