GT Advanced Technologies — at one time tapped to supply sapphire for Apple products — on Friday announced that it had finally emerged from bankruptcy, thanks to an $80 million investment from an unnamed collection of financiers.
Financiers have positioned floundering ex-Apple partner GT Advanced Technologies to emerge from bankruptcy with $80 million in funding, a plan that could allow the beleaguered former sapphire supplier to reposition itself as an industrial equipment manufacturer.
After a high-profile supply chain failure last year, Apple and would-be sapphire supplier GT Advanced Technologies have reached an agreement that will settle the bankrupt company's $439 million in outstanding debt.
In order to reduce expenses when it emerges out of Chapter 11 status, former Apple sapphire supplier GT Advanced Technologies is looking to cut 40 percent of its remaining workforce, according to bankruptcy court documents filed on Monday.
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.
After filing for Chapter 11 bankruptcy protection in October, former Apple sapphire supply partner GT Advanced is now seeking approval to mete out millions of dollars in executive bonuses as part of an employee retention program.
A lawyer representing sapphire maker GT Advanced Technologies on Monday said the company has agreed to a new set of terms in its settlement with Apple, with the redrafted arrangement assuaging concerns from jilted creditors seeking to derail proceedings by threatening legal action against Apple.
Secret documents being shared by Apple with creditors of former sapphire partner GT Advanced Technologies could become a matter of public record next month, as part of the ongoing bankruptcy proceedings.
In the wake of the collapse of sapphire maker GT Advanced Technologies, longtime members of Apple's supply chain have characterized the iPhone maker as a tough but fair partner who offers component makers a chance at success, provided they take proper precautions.
Following bankruptcy court filings that seek to postpone Apple's settlement agreement with GT Advanced, a report on Wednesday reveals inside details on why the ambitious sapphire production project went south.
Creditors backing GT Advanced Technologies have successfully pushed back an approval date for the company's settlement with Apple, saying an investigation will determine whether the sapphire maker was given short shrift in the agreement.
Adding background to Apple's vow to keep as many jobs as possible at its Mesa, Ariz., sapphire plant leased to GT Advanced, a new report says the facility will be repurposed, suggesting some current employees may be able to continue work at the location.
Apple's legendary efforts to keep upcoming products a secret are widely known, but the terms of the agreements that bind suppliers and workers were revealed in part on Friday, thanks to newly unsealed court filings.
Though bankrupt sapphire maker GT Advanced Technologies has accused Apple of crafting a "classic bait-and-switch" deal, newly unsealed court documents reveal Apple's side of the story, with the iPhone maker claiming it did everything it could to help the struggling supplier.
In an attachment to its quarterly 8-K filing, GT Advanced Technologies said the U.S. Securities and Exchange Commission is conducting an inquiry into the company's security trading practices and sapphire business.
In a ruling on Tuesday, a federal court judge handling bankruptcy proceedings for sapphire maker GT Advanced Technologies ordered to unseal sensitive documents detailing the company's doomed partnership with Apple.
Testimony from chief operating officer of GT Advanced Technologies reveals that the company lost $461 million before it filed for bankruptcy — a course that the company asserts was the result of "unsustainable" contracts in which it assumed all of the risk, while Apple took none.
Beleaguered Apple supplier GT Advanced Technologies has suggested it would prefer to sue the iPhone maker rather than reach a settlement, but going to court would be too "challenging and expensive" for the company to pursue.
Following the news that GT Advanced Technologies will spend up to four years paying back Apple's $439 million prepayment, Apple has revealed that the two companies were working on a new method of manufacturing sapphire that never actually went into production.