Singapore chip firm Global A&T files for bankruptcy

Bloomberg

Global A&T Electronics, a Singapore-based chip assembler that took on hefty debt a decade ago through a buyout by TPG Capital and Affinity Equity Partners, filed for bankruptcy as a 2013 debt exchange came back to haunt it.
The chip-assembler listed debt of more than $1 billion and
assets of over $500 million in Chapter 11 papers filed in US Bankruptcy Court in New York.
Pursued by bondholders since 2014, when a GSO Capital Partners fund and others cried foul over the debt exchange, Global A&T finally seemed to put the problem behind it when it announced a settlement in mid-September. At the same time, other bondholders had come forward to say they weren’t giving up their own lawsuit over the debt exchange, brought in 2017.
Such disputes—which also plagued a fellow distressed company owned by TPG, preppy retailer J. Crew Group Inc.—arise when creditors try to leapfrog each other in the priority scheme to be repaid. They seem to be increasing in frequency due to low interest rates in recent years
that allowed companies to refinance and take on multiple layers of debt.
Global A&T, also known as GATE, had said in a filing in November that it expected to commence the Chapter 11 case, upon receiving sufficient acceptances to confirm its restructuring plan.
As part of the restructuring, the company planned to issue $665 million in 8.5 percent new secured notes due 2022, according to a filing in November.