NEW YORK, Aug. 3, 2017 /PRNewswire/ -- On July 10, 2017, Global A&T Electronics, Ltd. ("GATE", and collectively with its affiliates and subsidiaries, the "Company") and the members of the steering committee (the "Steering Committee") of an ad hoc group of holders of GATE's $625 million 10.0% notes issued on or about February 7, 2013 (the "Old Notes") executed confidentiality agreements to facilitate restructuring discussions among the members of the Steering Committee, the Company, the Company's equity sponsors, and certain holders of GATE's $502 million 10.0% notes issued on or about September 30, 2013 (the "New Notes").
On August 1, 2017, GATE publicly disclosed certain information pursuant to the Confidentiality Agreements, including the terms of a potential "consensual restructuring" proposed by the Company (the "Initial Company Proposal"). In addition to the Initial Company Proposal, on July 25, 2017, the advisors to the Steering Committee received the following proposed terms (the "July 25 Proposal") from Moelis & Company, the Company's investment banker:
| Reorganized Company -- Capital Structure under July 25 Proposal: (assumes a restructuring otherwise based on the Initial Company Proposal (i.e., contribution of "UMS" business to the Reorganized Company by equity sponsors as part of the restructuring))
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| Takeback Notes: $650 million first lien senior secured notes; 7% interest rate |
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receive $531 million (approximately 85% of face |
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receive $119 million |
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Reorganized Company Equity |
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-- |
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10% |
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90% |
The members of the Steering Committee unanimously rejected the July 25 Proposal. The members of the Steering Committee look forward to continuing negotiations with the Company's advisors and hope to reach agreement on the terms of a restructuring with the Company and the equity sponsors.
The members of the Steering Committee as well as the ad hoc group are represented by Milbank, Tweed, Hadley & McCloy LLP and PJT Partners.
