Apple on Friday formally objected to a financing plan by its bankrupt former sapphire supplier, GT Advanced Technologies, on the basis of provisions tied to a May fire at its one-time plant in Mesa, Arizona.
GT said it needs to collect enough money from its insurance company to repair any damage done to the sapphire furnaces in Mesa — the alternative being defaulting on a proposed $95 million loan agreement, according to court documents obtained by Re/code. Apple argued that GT has already indicated damage was small, and that the proposed terms would give lenders too much leverage to foreclose on the furnaces if an insurance payout is deemed too low to make repairs.
GT would face the choice of defaulting either on its loan or the settlement it reached with Apple in 2014, the latter party said. A collection of GT shareholders have also complained, asking why the firm needs to raise money nine months into bankruptcy protection.
The fire in question began on the roof of the Mesa building, but was extinguished in about 35 minutes. At the time it wasn't clear what damage had been caused beyond wrecking some of the plant's solar panels.
Apple and GT partnered on the facility in 2013 with the goal of mass-producing sapphire for devices such as iPhones. GT declared bankruptcy in October 2014 however, later saying that Apple had engaged in "bait-and-switch" tactics and made unreasonable demands. Apple responded by claiming it had "bent over backwards" to accommodate the supplier's setbacks.
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Yet another poorly reported article with another negative spin on Apple on a website called 'ApplieInsider'. How about: Apple and GT partnered in 2013 but the deal fell through when GT CEO abruptly filed for banckruptcy after taking all of Apple's investment fundings. This Google-level betrayal was heightened further when same CEO then publicalky accused Apple of bullying, which was later proven incorrect. This latest attempt by the company and its holders shows more of the same. Maybe 'Administrator' is actually a wordbot.
"I Believe that sometimes you gotta wreck the truck to get the insurance money to make the truck payment." – Larry the Cable Guy
This fire was supposed to have damaged all the sapphire furnaces but the fire department put the fire out too quickly and messed up that plan so the damage was minimal. Now the GT Advanced Technologies CEO is trying to raise money using the fire as the basis... the guy is as crocked as a dog's hind leg...
Have they sold [I]any[/I] of those furnaces in the many months since the agreement?