The drama continues between GT Advanced Technologies and Apple as we’re all reminded that secrets really aren’t that fun. As we probe into GTAT’s court case, attempting to unveil the secrets within, reports reveal that Apple will slap you with a hefty fine of upwards to $50 million if you disclose confidential matters.
To recap, GTAT signed an agreement with Apple to be a significant supplier of sapphire for their mobile gadgets in an overwhelming $578M deal. As of now, we know that five payments were to be made out to GTAT, but as October approached, the fifth and final payment was nowhere to be found, thus resulting in GTAT’s chapter 11 bankruptcy filing.
Related: Sapphire of my eye, Apple expands manufacturing to Mesa with GT Advanced Technologies in $578M deal
Now, we all know that Apple is a notorious secret-keeper, but there’s something different about the pending GTAT divorce.
GTAT’s stock has plummeted to a minuscule $0.47 as of October 15, and it’s been reported that top executives at GTAT sold significant amounts of stock before their abrupt October 6 bankruptcy filing. So, what gives?
GTAT has made it clear that Apple’s “oppressive and burdensome” agreement with the sapphire supplier made it extremely difficult for them to fulfill their obligations. According to The Financial Times, GTAT’s lawyers are arguing that even more information about its relationship with Apple should be published, in the interests of creditors and shareholders.
The hearing that was supposed to take place today at the U.S. Bankruptcy Court, Manchester, New Hampshire, where GTAT’s headquarters are located, was pushed back to October 21. According to Reuters, Judge Henry Boroff said, “I’ve got a foot-high stack of documents, and it can’t be that it all must be sealed.” So, Judge Boroff has asked Apple to write up a list by Monday of exactly which aspects of the filings are sensitive.
Here is what AZTB knows so far
Contributions from The Business Insider, The Financial Times and Reuters
