Global A&T Electronics Ltd. has reached a deal with bondholders that will slash almost 40 percent off of the semiconductor company’s debt load of more than $1.1 billion, WSJ Pro Bankruptcy reported. The company said on Thursday that the deal, which will be implemented through a pre-packaged bankruptcy plan, has the backing of 85 percent of its bondholders and its private-equity backers, Affinity Equity Partners and TPG Capital. In addition to reducing its funded debt to a total of $665 million the deal cuts Global A&T’s debt service by nearly half, to about $56.5 million. Under the terms of the proposed deal, holders of $625 million in debt coming due in 2019 would receive $540 million of new debt. Other creditors owed $500 million from a previous bond exchange would receive $110 million in new debt and a 31 percent stake in the restructured company.
