Milbank, Tweed, Hadley & McCloy LLP represented an ad hoc group of Global A&T Electronics Ltd.’s (GATE) initial noteholders in connection with the confirmation of its prepackaged plan of reorganization as part of voluntary proceedings under Chapter 11 of the US Bankruptcy Code in the United States Bankruptcy Court for the Southern District of New York, White Plains Division. The highly successful reorganization plan, which was confirmed and became effective in January 2018, will permit GATE to reduce its approximately $1.12 billion funded debt to a total of $665 million and reduce its annual debt service by nearly half, to approximately $56.5 million.
The holders of the Initial Notes received approximately $540 million of the principal amount of the first lien senior secured notes issued by GATE. The notes will bear interest at 8.5% per year, have a 5-year tenor, and started accruing interest on January 1, 2018. On the effective date, GATE’s equity owner, UTAC Holdings Ltd. (UTAC) contributed UTAC Manufacturing Services Pte. Ltd. (UMS) to GATE, a semiconductor manufacturing company incorporated in Cayman with subsidiaries in various jurisdictions including Cayman, Singapore, Hong Kong, Malaysia, Thailand and Indonesia.
The proceedings required Milbank’s transnational team to navigate various intricate steps in a number of jurisdictions to give effect to the restructuring.
The Milbank team comprised partners and associates from across the Financial Restructuring, Capital Markets and Corporate practices in the firm’s New York, Singapore and Los Angeles offices, with partners Dennis Dunne, Abhilash Raval, David Zemans, Dan Perry, Jacqueline Chan, Paul Denaro, Eric Reimer, and Alan Stone, special counsel Brian Kinney, and associates Michael Price, Paul Springer, Andrew Gibb, Daniel Elliott and Jooyoung Song.
