GT Advanced Wants to Stop Manufacturing Sapphire for Apple

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Posted October 10, 2014 at 2:29am by iClarified

GT Advanced wants to stop manufacturing sapphire after a failed attempted to produce the material for Apple, reports the WSJ. The company surprisingly filed for bankruptcy just days ago.

After a hearing on the matter today, Judge Henry Boroff ruled that details of the arrangement between Apple and GT may be kept confidential. He also authorized GT Advanced to seal court papers which reveal what went wrong in the financing and supply arrangement with Apple.

The company owes trade creditors $145 million and bondholders $434 million. GT lawyer Luc Despins they are “tied up in knots with confidentiality agreements” and cannot reveal the full story of why the company needs to declare bankruptcy. Disclosing “the full causes of the filing and the game plan in the case” could cost them $50 million in damages from a third party, later revealed to be Apple, that has prohibited it from even discussing the confidentiality arrangements.

The WSJ further reports that Judge Henry Boroff signed an order sealing a supplemental declaration from a GT executive in regards to the relationship with Apple. GT Advanced was instructed to file emergency motions, including one asking for authorization "to wind down operations at sapphire manufacturing facilities."

GT is also set to file motions for expedited hearings on "its motion to wind down certain operations" and to get out of contracts and leases connected to the operations. Judge Boroff set an October 15th date for a hearing on the request.

Apple just reiterated its statement from yesterday. "We are focused on preserving jobs in Arizona following GT’s surprising decision and we will continue to work with state and local officials as we consider our next steps."

Judge Boroff's order says that Apple must be given three days notice if GT Advanced wants to discuss their relationship publicly so that they can get a court order prohibiting the disclosure of that information.

More details in the full report linked below...

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GT Advanced Wants to Stop Manufacturing Sapphire for Apple

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Bill - October 11, 2014 at 5:33am

$145million yeah it's a typo dude! Get over it Anyhow GT simply wants towable a ceaseless supply of cash to produce sapphire as its gonna be hella expensive to do it in the yields apple needs so they just gonna go belly up halfway to force a purchase. We better hope China doesn't get smarter and purchase them , then they get all the technology oh well watch it

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AppleGuy299 - October 10, 2014 at 3:02am

iClarified, just $145? "The company owes trade creditors $145"

Bill - October 10, 2014 at 2:41am

GT just wants to get bought out by Apple. They know that Apple has tons of billions and can afford to buy them out so they want to push Apple to buy them and this is the best way they're going to do it it's kind of stupid way but Theyre gonna try it anyway