“Apple is objecting to bankrupt GT Advanced Technologies’ financing plan, saying the terms of the $95 million loan agreement would undermine a settlement the iPhone maker reached with its former sapphire crystal supplier last year,” Dawn Chmielewski reports for Re/code.
“The Cupertino technology giant said it generally supports GT’s plans to obtain financing to help it reorganize under the supervision of the U.S. Bankruptcy Court,” Chmielewski reports. “However, it takes issue with certain provisions of the loan that are tied to a May fire at Apple’s Arizona facility.”
Chmielewski reports, “A group of GT Advanced’s shareholders also have raised objections, questioning why the company needs to raise money nine months into its bankruptcy.”
Read more in the full article here.
MacDailyNews Take: It’s the amateur hour that never ends.
SEE ALSO:
Fire damages Apple’s former sapphire-screen factory in Mesa, Arizona – May 27, 2015
GT Advanced to pursue $95 million bankruptcy loan – March 18, 2015
GT Advanced wants bankruptcy judge to approve millions in executive bonuses – December 31, 2014
Apple, GT Advanced and the ‘boule graveyard’ – November 20, 2014
Lack of experience, mismanagement doomed GT Advanced’s sapphire adventure – November 19, 2014
Court unseals GT Advanced documents: Apple says it ‘bent over backwards’ to help sapphire supplier – November 7, 2014
GT Advanced COO sold $2 million in stock after sapphire deal with Apple began to sour – October 14, 2014
GT Advanced blames ‘oppressive and burdensome’ Apple terms in quest to ax sapphire production – October 10, 2014
GT Advanced CEO sold 9,000 shares the day before Apple’s iPhone 6/Plus event – October 7, 2014
Oh. The Executives must not have gotten their bonuses for going bankrupt – better borrow money and give it to them. If it’s good enough for Wall Street, it must be good enough for all those poor executives out there who drive their companies into the ground…
Immediately, AIG comes to mind.
:-Q*****
Something fishy. Under the previous settlement with Apple, GT agreed that Apple would take over the furnaces. Now it is using them as collateral to get more money in the form of loans!
Total agreement Omega. Week old fish rotting in the sunshine fishiness. I’m sorry Apple ever got involved with this, ahem, deceptive company. GT wants a loan but can’t pay its debts. Sounds Greek to me! 😉
What Apple and the Securities and Exchange Commission (SEC) should be objecting to is the fact that the CEO of GT Advanced Technologies (the supplier of Apple’s sapphire) cashed his stock options only a few days before GT announced that they were losing their shorts financially.
He made MILLIONS overnight; his stock was purchased by innumerable others in the general public who were optimistic about GE’s prospects given all the “Apple sunshine” being blow up their ass. The SEC has strict rules requiring that company insiders not make trades if they have knowledge of important and germane facts about their company’s prospects if that information is not publicly available.
BTW, I did not buy an stock in GT Advanced Technologies and personally know of no one who did. I just hate cheats. I wonder if the SEC has even gone to court to freeze that CEO’s finances so he can’t hide his ill-gotten gains.