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...
Read More
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...
Read More