GT Advanced Bond Traders Drawn to Prospect of Apple Suits
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Traders are being drawn to bankrupt GT Advanced Technologies Inc. bonds by the prospect of lawsuits to recover money from Apple Inc. and other creditors, lifting the value of lower-ranking debt, according to analysts.
Bonds of GT Advanced, a maker of synthetic sapphire, are currently at around 45 cents on the dollar. They might rise if Apple is forced to give up some of its $439 million in claims, and if litigation takes back $56 million paid to trade creditors just before the bankruptcy, said Joe Sarachek, a managing director at CRT Capital Group LLC in Stamford, Connecticut, which trades bankrupt companies’ debt.