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  • GT Advanced Technologies Agrees to a New Set of Terms in its Settlement with Apple

    A lawyer that represents sapphire maker, GT Advanced Technologies, recently said the company has agreed to a new set of terms in its settlement with Apple with a redrafted arrangement that eases concerns from creditors seeking to derail proceedings by threatening legal action against Apple. A bankruptcy court judge in New Hampshire signed off on an amendment settlement from GTAT and Apple which is meant to stave off creditors that wanted to turn GT’s bankruptcy into a litigious free-for-all.

    As mentioned in various court filings, both creditors and Apple are walking away from potential lawsuits stemming from GT’s surprise Chapter 11 bankruptcy protection filing from October. As of right now, GT, Apple and creditors all claim being the victim. The creditors which helped finance part of GT’s $900 million sapphire gamble argued that Apple could face numerous suits in relation to its actions when in partnership with GT which didn’t meet their end of the contract. Apple said it was cast in a poor light after privileged documents came to light as part of GT’s bankruptcy proceedings as Apple’s demands were deemed “oppressive and burdensome” by GTAT.

    Regarding the new deal, GTAT plans to sell off roughly 2,000 sapphire furnaces installed at Apple’s Mesa, Arizona facility in a bid to exit bankruptcy protection but will take more cash per transaction. Along with a higher take of asset sales, GTAT will get the right to store outgoing furnaces at Mesa for an additional three months, rent free.

    Reports show GTAT lawyer, Luc Despins, stating anticipated furnaces could sell for at least $500,000 each with Apple getting a $169,000 cut for the first 500 sold. When under the previous agreement, Apple was to receive $200,000 for each of the first 500 furnaces sold instead.

    Source: Reuters, The Wall Street Journal
    This article was originally published in forum thread: GT Advanced Technologies Agrees to a New Set of Terms in its Settlement with Apple started by Akshay Masand View original post