GT Advanced Technologies Inc (OTCMKTS:GTATQ) managed to record a big move upon increasing volume reversing from the low of $0.22 a share. In last trading session, the stock jumped more than 32% to close at $0.326. GTATQ had witnessed upwards bounce in recent weeks after making a low of $0.06 in last week of August.
As of now, GT Advanced is operating in bankruptcy as a debtor in possession concentrated on restructuring its operations and debt while remaining in control of its assets. In order to achieve the defined objectives, the company had obtained $95 million from bondholders, replaced CEO Tom Gutierrez, and set a goal to mitigate costs by 40%.
A couple of weeks ago, A U.S. judge rejected a proposal of compensating bonuses to top management of bankrupt entities including Molycorp Inc (OTCMKTS:MCPIQ) and GT Advanced. The companies that have filed for bankruptcy protection believes that bonuses plan support executives’ goals with those of firm’s creditors to protect the value of businesses.
For GT Advanced, it was a big blow as Judge Henry Boroff rejected its proposal of bonus plan for the second time. He said that the company needs compensation to make bonus payments to employees for completing a task that they are obligated to perform. However, top management and board members are deemed as “insiders” who should participate in a proposal that includes tough target and not just retention compensation.
RadioShack kept over $2 million aside for insider bonuses in its bankruptcy plan. It did not disclose the names of entitled personnel when it proposed the plan, which was approved in part as some stores endured bankruptcy phase. Last year, Judge Sontchi approved a proposal of Energy Future Holdings Corp. However, in GT Advanced case, Boroff termed the compensation plan for top management as “insensitive” to shareholders.
GT Advanced Technologies Inc (OTCMKTS:GTATQ) finished its intermediate corrective phase with a bang as it ended the last trading session with a mammoth gain of 32.47%. The volume of 2.9 million was exactly the same as the daily average volume and only that part might have been a concern for the bulls. Still, the price action can’t be ignored right now as the bounce back came from a very significant level, as shown on the chart attached. To continue the rally, the bulls need a couple of follow up days in the next few sessions.
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