Singapore Chipmaker Blames Buyout in Bid for Quick Bankruptcy

Global A&T Electronics Ltd., the Singapore-based chip assembler plagued for a decade by the debt it took on under a TPG Capital and Affinity Equity Partners buyout, filed for bankruptcy with a plan to turn itself around by the end of this week.

The company cited more than $1.2 billion in debt from the 2007 private equity deal as the cause of its Chapter 11 bankruptcy in New York Sunday. Hefty interest payments prevented "GATE," as the company is known, from growing its business to meet customers’ needs, it said. A proposed reorganization plan would give noteholders new debt to satisfy their claims, according to court papers. Global A&T is seeking approval for the plan by Dec. 21.