Morning Commentary: GT Advanced Technologies in focus after company files Chapter 11

By Rebecca Melvin

New York, Oct. 6 – GT Advanced Technologies Inc.’s convertible bonds were in focus early Monday after the Merrimack, N.H.-based solar and LED equipment company announced that it has filed for Chapter 11 bankruptcy protection, a New York-based trader said.

The convertibles weren’t heard to have traded, but a Connecticut-based trader said he was hearing the company’s two convertible bonds were at 10 bid.

GT shares opened at $11.06 and dropped to $0.99.

GT Advanced has two convertible bond series, including a 3% convertible due 2020 of which $190 million priced in December 2013 and a 3% convertible due 2017 of which $220 million priced in September 2012.

GT Advanced said that it expects to continue to conduct business as usual after it and certain of its direct and indirect subsidiaries filed for Chapter 11 bankruptcy protection in the U.S. Bankruptcy Court for the District of New Hampshire.

As of Sept. 29, the company had about $85 million in cash, and it now seeks debtor-in-possession financing.

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