“GT Advanced Technologies has signed a pact with Apple Inc. for an ‘amicable parting of the ways,’ Luc Despins, attorney for the bankrupt supplier to the technology giant, said Tuesday in the U.S. Bankruptcy Court in New Hampshire,” Peg Brickley reports for The Wall Street Journal.
“Mr. Despins said GT Advanced and Apple have agreed to file a revised explanation for GT Advanced’s surprise bankruptcy filing as part of the pact, and ultimately erase from the public record the court papers that set out what went wrong in the relationship between the two companies,” Brickley reports. “The lack of information about GT Advanced’s Chapter 11 bankruptcy has caused a stir among creditors and shareholders shocked by what Senior Assistant New Hampshire Attorney General Peter Roth called GT Advanced’s ‘catastrophic’ collapse.”
“Mr. Despins said the proposed settlement allows GT Advanced to try to sell the furnaces at the Mesa, Ariz. sapphire-manufacturing facility, and give the money to Apple, which financed the equipment. GT Advanced would surrender its claims against Apple, under the deal, and agree not to disparage the technology giant, Mr. Despins said,” Brickley reports. “Judge Henry Boroff, at the start of the case, huddled privately with attorneys for Apple and GT Advanced, with an officer of the Justice Department present, and ordered sealed the declaration that explains the reasons for the company’s Chapter 11 bankruptcy. Tuesday, he said the papers will remain sealed while GT Advanced and Apple pursue their settlement.”
Read more in the full article here.
MacDailyNews Take: Cinderous Uncoupling.