“GT Advanced Technologies Inc. (GTAT) should be ordered to file a public account of why it filed for Chapter 11 protection, including key transactions with Apple Inc., according to both the U.S. Trustee supervising the company’s bankruptcy and the state of New Hampshire,” Dawn McCarty and Linda Sandler report for Bloomberg. “GT Advanced hasn’t provided an explanation, saying it wants to avoid the risk of incurring $50 million in damages per violation under confidentiality agreements with Apple. Those accords broadly preclude the company from disclosing details about its business with Apple “except to the extent required by law,” according to court papers filed last week.
“‘Public scrutiny of a debtor’s conduct and transparency in the bankruptcy process is essential to fostering confidence among creditors and parties in interest regarding the fundamental fairness of the bankruptcy system,’ the U.S. Trustee, the Justice Department’s bankruptcy watchdog, wrote in court papers yesterday urging a judge to order disclosure,” McCarty and Sandler report. “In seeking to file sealed documents, the company has cited a confidentiality agreement with Apple, which helped to finance the company’s sapphire production without purchasing it for a new mobile phone.”
“In opposing the request, the U.S. Trustee said the company’s explanation of its operations and setbacks isn’t within the scope of commercial information that Congress has said may be protected,” McCarty and Sandler report. “The state of New Hampshire, which filed its objection today, said ‘transparency’ is needed in the case.”
Read more in the full article here.
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