• Apple and GT Advanced Technologies Reach an Agreement to Settle $439M of Debt

    Apple and the would-be sapphire supplier, GT Advanced Technologies, have recently reached an agreement that will settle the bankrupt company’s $439 million in outstanding debt. According to court documents that were filed with the US Bankruptcy Court in New Hampshire recently, GTAT is planning on auctioning off its sapphire manufacturing equipment that was acquired during a buildout of operations connected to the company’s now defunct partnership with Apple. GTAT is set to keep roughly 600 furnaces as part of its arrangement while the unsold items will be given to Apple for disposal.

    For those of you who didn’t know, the deal comes just one year after GTAT filed for chapter 11 bankruptcy protection for what the company claimed and continues to claim was a “classic bait-and-switch” that was in favor of Apple. For its part, the Cupertino California company claims that the partnership failed due to GTAT’s inability to deliver a sufficient number of quality sapphire boules.

    As of right now, GTAT has until November 23 to auction off its remaining furnaces before an equipment move-out deadline which is set for December 31st. The companies both have to await final approval from a bankruptcy judge before moving forward but reports are stating that the agreement will likely be approved.

    Source: The Wall Street Journal
    This article was originally published in forum thread: Apple and GT Advanced Technologies Reach an Agreement to Settle $439M of Debt started by Akshay Masand View original post
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