GT Advanced was granted court permission to wind down sapphire production after it reached a deal with Apple over contract and confidentiality matters, reports Bloomberg. The company also got permission from U.S. Bankruptcy Judge Henry Boroff to pay incentives to some employees.
GT Advanced and Apple, which announced a supply agreement less than a year ago, have arrived at an “amicable parting of ways,” Luc Despins, an attorney for the debtor, told Boroff today at a hearing in Massachusetts. The agreement, which will be filed by Oct. 24 with minor redactions, will save GT Advanced millions of dollars, the lawyer said. A hearing to seek approval of the settlement was set for next month.
GT Advanced previously said that it's agreement with Apple imposed 'oppressive and burdensome terms and obligations' on the company leading to its bankruptcy filing. GT wanted the court to void its agreements with Apple and approve a wind down plan to cease sapphire production in Arizona, causing the loss of 890 jobs.
Apple was expected to use sapphire for the iPhone 6 display cover and has announced sapphire covered displays for the Apple Watch. It's future plans for sapphire are unclear at this time.
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GT Advanced and Apple, which announced a supply agreement less than a year ago, have arrived at an “amicable parting of ways,” Luc Despins, an attorney for the debtor, told Boroff today at a hearing in Massachusetts. The agreement, which will be filed by Oct. 24 with minor redactions, will save GT Advanced millions of dollars, the lawyer said. A hearing to seek approval of the settlement was set for next month.
GT Advanced previously said that it's agreement with Apple imposed 'oppressive and burdensome terms and obligations' on the company leading to its bankruptcy filing. GT wanted the court to void its agreements with Apple and approve a wind down plan to cease sapphire production in Arizona, causing the loss of 890 jobs.
Apple was expected to use sapphire for the iPhone 6 display cover and has announced sapphire covered displays for the Apple Watch. It's future plans for sapphire are unclear at this time.
Please follow iClarified on Twitter, Facebook, or RSS for updates.
Read More