After proceeding with the GT Advanced Technologies Inc (NASDAQ:GTAT) bankruptcy case, the judge involved in the process has asked the sapphire manufacturer to disclose more information at the public stage. However, GTAT has pushed the hearing further to October 21, as it fears for the $50 million confidentiality contract it signed with Apple Inc. (NASDAQ:AAPL) for non-disclosure of agreement details.
During the earlier hearings of the case, Henry Boroff, U.S. Bankruptcy Judge, allowed GTAT to file a sealed document laying out the primary details that fueled the current problems between the sapphire manufacturer and the iPhone maker. However, after reviewing the documents, Boroff said to an Apple lawyer that he is “having some difficulty” regarding the info considering that what needs to stay confidential. He further added, “Tell me what it is that you think can hurt Apple.”
Boroff is trying to figure out the potential reasons for bankruptcy from the sapphire manufacturer considering the fact that GT Advanced Technologies Inc (NASDAQ:GTAT) still has $85 million in cash. GTAT is not ready to disclose the details either because of its $50 million confidentiality agreement with Apple Inc. (NASDAQ:AAPL).
The problem started when Apple Inc chose Gorilla Glass for its latest iPhone despite of its earlier $578 million funding for GTAT to build the material for the same and as a result, the sapphire maker filed a chapter 11 bankruptcy with minimal information disclosure. GTAT has plans to shut down its Arizona plant while putting 900 jobs on the line while seeking permission from the court to abandon Apple’s “oppressive and burdensome” agreements.
Apple Inc. (NASDAQ:AAPL) asked for permission for filing its sealed motion in the contract-rejection aspect of the cases stating that “in order to protect the confidential commercial information contained therein and to comply with the terms of its confidentiality agreements with GTAT.”
This article has been written by Prakash Pandey.
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