1. Akshay Masand's Avatar

    It has been recently reported that GT Advanced will be selling more than 2,000 sapphire furnaces in order to pay Apple its outstanding debt. This report comes from Fortune’s Philip Elmer-DeWitt as he was listening in on GT’s Chapter 11 bankruptcy proceedings in court recently. Elmer-DeWitt’s Twitter post read:

    Apple won't get the furnaces. It will take the cash from their sale as full settlement of the $439 million GT owes them.
    GT reached a settlement with Apple where they would have to sell about 2,039 furnaces to other companies in order to pay off their debt to Apple. The company had apparently failed to deliver what was agreed upon between the two and therefore filed for bankruptcy in early October. Apple had given a $439 million loan to GT in order to purchase sapphire supplies, and that is a huge sum GT will have to pay back to the Cupertino-based company.

    The contracts between the two companies were worth $578 million, where GT won the deal to supply secret sapphire supplies to Apple. As you can see, the numbers are crazy but the amount GT and Apple came to an agreement with is already less than what the original contact was.

    Source: Twitter (via Philip Elmer-DeWitt)

    Twitter: @AkshayMasand
    2014-10-23 07:44 AM