GT Advanced Technologies recently told the bankruptcy court that its settlement proposal with Apple was a necessity because going to court wouldn’t be a viable solution for the company as it would be too “challenging and expensive.”

In its filings, GTAT continues to paint a picture where it’s under the thumb of Apple noting that "protracted litigation against one of the largest corporations in the world with over $100 billion of cash would be challenging and expensive." The company went on to tell the court that it believes it would win against Apple citing "protracted litigation against one of the largest corporations in the world with over $100 billion of cash would be challenging and expensive." Furthermore, GTAT accused Apple of engaging in "inequitable conduct" that "resulted in an injury to creditors or conferred an unfair advantage on Apple." Despite all this, it’s an uphill battle that the company can’t afford so they won’t be pursuing it.

Apple on the other hand implied that it may not be done with its former partner. In a statement which was issued last week, the Cupertino California company said it would “continue evaluating GTAT’s progress on larger sapphire boule development.” GTAT on the other hand says it plans to exit the sapphire production business entirely. The proposed settlement has the company selling off over 2,000 “Advanced Sapphire Furnaces” on the open market to repay $439 million over 4 years, interest-free. This particular deal would allow GTAT to be released from its exclusive agreement with Apple.

Meanwhile, GTAT has already begun the process of shutting down its facility in Mesa, Arizona and has laid off roughly 650 employees. Apple mentioned that it has been working on an “ambitious” sapphire manufacturing process but the method is “not ready for production” as of yet. We’ll have to wait and see what happens going forward.

Source: The Wall Street Journal