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  • GT Advanced Technologies to Sell Off 2,000+ Sapphire Furnaces to Help Pay Off Debt


    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 Fortuneís Philip Elmer-DeWitt as he was listening in on GTís Chapter 11 bankruptcy proceedings in court recently. Elmer-DeWittís 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 contract was.

    Source: Twitter (via Philip Elmer-DeWitt)
    This article was originally published in forum thread: GT Advanced Technologies to Sell Off 2,000+ Sapphire Furnaces to Help Pay Off Debt started by Akshay Masand View original post
    Comments 3 Comments
    1. Jahooba's Avatar
      Jahooba -
      That's... crazy. Anyone know what went wrong?
    1. junpar's Avatar
      junpar -
      Quote Originally Posted by Jahooba View Post
      That's... crazy. Anyone know what went wrong?
      Probably couldn't make enough.

      You can't have some iphone 6's with sapphire displays and the others without.
    1. bigboyz's Avatar
      bigboyz -
      I believe they bit off more than they can chew. Probably undercut themselves just to get the deal. Lesson learned.