A bankruptcy court has ruled that a number of disclosures provided by GT Advanced Technologies Inc (OTCMKTS:GTATQ) fall out of the scope that protects them from being made public. GT Advanced had refrained from making some of the documents public of fear of litigation, as well as incurring fines from Apple Inc. (NASDAQ:AAPL)
Documents To Be Unsealed
The ruling by the court gives GT Advanced permission to unseal some of the documents that could shed more light on the reasons behind its bankruptcy filing. One of the documents outlines in detail an agreement Apple Inc. (NASDAQ:AAPL) had signed with the company for the supply of Sapphire glass that were to be used in iPhone 6.
Judge Henry Boroff of the bankruptcy court also ruled that some of the documents will have to be kept from the public eye. Some of the documents according to the judge contain sensitive corporate information. GT Advanced has always argued that unsustainable contract terms with Apple Inc. (NASDAQ:AAPL) pushed it to bankruptcy. The terms of the contracts are reported to have cost the company $461 million with higher manufacturing costs as well as production deficiencies as some of the reasons behind the deal’s downfall.
Debt Payment Terms
Apple and GT Advanced have already reached an agreement that will see the latter paying its debt after selling more than 2,000 Advanced Sapphire Furnaces. Under the agreed terms of settlement, GT Advanced will pay Apple $200,000 per furnace sold for the first 500 units, $250,000 per unit for the next 500 units and then $290,000 per unit for the remaining furnace until the entire loan is paid.
The genesis of GT Advanced woes was failure to meet contractual production goals as agreed with Apple Last November.
Apple Inc. (NASDAQ:AAPL) had inked a $578 million contract with GT Advanced for the supply of Sapphire material that were to be used on future products notably iPhone 6. Apple had paid $439 in the first round of investment withholding the remaining $139 million.