By Peg Brickley
Federal bankruptcy watchdogs have asked that an independent
examiner be appointed to oversee spending in the bankruptcy of GT
Advanced Technologies Inc.
U.S. Trustee William Harrington this week asked U.S. Bankruptcy
Judge Henry Boroff to appoint a third party to sort through the
bills--from law firms and other advisers--that are expected to
arrive as part of GT Advanced's case. The company's lead bankruptcy
lawyer, Luc Despins, said the firm won't oppose the motion.
GT Advanced filed for chapter 11 bankruptcy protection in
October 2014 after plunging into debt in an unsuccessful bid to
produce smartphone-screen material for Apple Inc. The company
decoupled from Apple by way of a settlement approved by the court
in December 2014 and attempted a recovery as a manufacturer of
furnaces and other industrial equipment.
Courts are increasingly relying on outside aid to review fees in
large, complex bankruptcies. GT Advanced's first round of bills
averaged nearly $3 million a month.
With about a dozen firms already working on the chapter 11
proceeding, keeping tabs on the bills could prove "especially
challenging," Mr. Harrington wrote in court papers. He cited the
"size and complexity" of GT Advanced's bankruptcy proceeding, an
effort to resolve more than $1 billion in debts.
Mr. Harrington is calling on Joseph McMahon, a Delaware lawyer
and 10-year veteran of the U.S. trustee's office, to review the
fees of the GT Advanced firms. Mr. Harrington is seeking a hearing
next week on the matter, which is before the U.S. Bankruptcy Court
for New Hampshire.
(Dow Jones Daily Bankruptcy Review covers news about distressed
companies and those under bankruptcy protection. Go to
http://dbr.dowjones.com)
Write to Peg Brickley at peg.brickley@wsj.com
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