GT Argues Inability to Disclose Bankruptcy Details, Citing Confidentiality Agreements

GT Advanced Technologies today appeared in a New Hampshire courtroom, asking for non-disclosure in its pending bankruptcy proceedings. According to Reuters, a lawyer for the company told the court that a confidentiality agreement prevented it from disclosing the details surrounding its Chapter 11 bankruptcy.

Luc Despins of Paul Hastings told U.S. Bankruptcy Judge Henry Boroff an unspecified confidentiality agreement prevented GT from disclosing the cause of its bankruptcy, or its plan for dealing with the situation. He also acknowledged the 90 percent drop in the company’s stock price in the first three trading days of this week.

GT further asked the court to seal select documents referencing a third-party, noting that the disclosure would violate existing confidentially agreements. The publication of these documents could prove costly to the sapphire maker with potential damages of $50 million per violation. GT failed to identify the third-party company, but it almost certainly is Apple, which is known for its strict confidentiality clauses.

gt_advanced_logo
GT's lawyers also asked that the proceedings be closed to the public as part of what they agree is an "unusual (and perhaps unprecedented)" request. Lawyers from the Department of Justice denounced GT's motions, saying "the record is insufficient for the court to find what the court needs to find."

GT filed for bankruptcy earlier this week, taking Apple and Wall Street by surprise. Apple reportedly was working with the company to help it remain solvent, but those efforts have failed for the time being and GT will seek to restructure its finances moving forward.

Popular Stories

iOS 26

Everything New in iOS 26.1 Beta 1

Monday September 22, 2025 12:44 pm PDT by
Apple released the first beta of iOS 26.1 today, just a week after launching iOS 26. iOS 26.1 mainly adds new languages to Apple Intelligence, but there are a few other features that are worth knowing about. New Apple Intelligence Languages Apple Intelligence is now available in Danish, Dutch, Norwegian, Portuguese (Portugal), Swedish, Turkish, Chinese (Traditional), and Vietnamese. AirPo...
apple tv 4k new orange

Next Apple TV Expected to Launch This Year With These New Features

Monday September 22, 2025 10:00 am PDT by
The next Apple TV is expected to be released later this year, and a handful of new features and changes have been rumored for the device. Below, we recap what to expect from the next Apple TV, according to rumors. Likely Features N1 Chip With Wi-Fi 7 Last year, Bloomberg's Mark Gurman said the next Apple TV would be equipped with Apple's own combined Wi-Fi and Bluetooth chip, which is...
iPhone 17 Pro USB C Port

iPhone 17 Pro Max's USB-C Charging Speeds Tested With Apple Chargers

Monday September 22, 2025 7:29 am PDT by
The website ChargerLAB has tested the iPhone 17 Pro Max's USB-C charging speeds with a variety of Apple's chargers, from 18W to 140W. The device reached a peak charging speed of around 36W with the following Apple chargers:40W Dynamic Power Adapter with 60W Max 61W USB-C Power Adapter 67W USB-C Power Adapter 70W USB-C Power Adapter 96W USB-C Power Adapter 140W USB-C Power AdapterFor...
Apple Intelligence General Feature 2

iOS 26.1 Adds New Apple Intelligence Languages and Expands AirPods Live Translation

Monday September 22, 2025 11:15 am PDT by
With iOS 26.1, Apple Intelligence is gaining support for additional languages, including Danish, Dutch, Norwegian, Portuguese (Portugal), Swedish, Turkish, Chinese (Traditional), and Vietnamese. Apple announced plans to expand the languages that can be used with Apple Intelligence last year, and now the added language support is here. Apple Intelligence is now available in the following...
iPhone 17 Pro and Air N1 Feature

Some iPhone 17, iPhone 17 Pro, and iPhone Air Users Experiencing Intermittent Wi-Fi Issue

Monday September 22, 2025 8:44 am PDT by
Apple's latest iPhone models launched on Friday, and some early adopters of the devices are experiencing intermittent Wi-Fi issues. Affected customers say Wi-Fi connectivity periodically cuts out on the iPhone 17, iPhone 17 Pro, iPhone 17 Pro Max, and iPhone Air, with hundreds of comments about the issue posted across the MacRumors Forums, Reddit, and the Apple Support Community over the...
iPhone 17 Pro Colors

Skipped the iPhone 17 Pro? Here's What is Rumored for iPhone 18 Pro

Tuesday September 23, 2025 8:55 am PDT by
While the iPhone 18 Pro and iPhone 18 Pro Max are still a year away, there are already a few rumors about the devices that offer an early look ahead. Below, we have recapped some of the early iPhone 18 Pro rumors so far. This story was published previously, and it has been updated to reflect the latest rumors. Many early rumors prove to be true, but nothing is confirmed yet, and Apple's...
Apple Foldable Thumb

Foldable iPhone Like 'Two Titanium iPhone Airs' Joined at the Hinge

Monday September 22, 2025 2:16 am PDT by
Next year's rumored foldable iPhone will showcase an ultra-thin design resembling "two titanium iPhone Airs side-by-side," according to Bloomberg's Mark Gurman. Writing in the Q&A section of his latest Power On newsletter, Gurman says Apple's first foldable device will be "super thin and a design achievement," combining Apple's thinnest iPhone form factor with cutting-edge folding...
iOS 26 Battery Glass Feature

iPhone 16 Pro Max 80% Charge Limit: One Year Later, Was It Worth It?

Wednesday September 24, 2025 3:58 pm PDT by
With the iPhone 15 series, I did an experiment and kept my iPhone's Charge Limit set at 80 percent for an entire year. It provided an interesting look at the impact of charge limits on battery longevity, so I decided to repeat it for the iPhone 16 line. Since September 2024, my iPhone 16 Pro Max has been limited to an 80 percent charge, with no cheating. As of today, my battery's maximum...
iphone 17 pro dark blue 1

Apple Blames In-Store MagSafe Chargers for iPhone 17 Pro Display Model Scratches

Wednesday September 24, 2025 10:22 am PDT by
The marks on the iPhone 17 Pro models that people have noticed at Apple retail stores are caused by the chargers that Apple uses, Apple confirmed today. Apple told 9to5Mac that worn MagSafe charging stands in stores are causing marks on the iPhone 17 Pro and iPhone 17 Pro Max. Apple says that the marks are not scratches, and are instead material transfer from the stand to the phone. The...
ios 26 digital id passport wallet

Apple Confirms iOS 26 Wallet Passport Feature is Coming in 2025

Tuesday September 23, 2025 1:06 pm PDT by
Digital ID, the iOS 26 feature that lets U.S. passport holders add their passports to the Wallet app, is coming later in 2025, Apple confirmed today. Apple updated the release timing wording of Digital ID on its iOS 26 features page. "Digital ID will be coming later this year with US passports only," it reads. Prior to today, the footnote for the feature said "Digital ID will be available ...

Top Rated Comments

UnfetteredMind Avatar
143 months ago
It sort of is. Apple agreed to finance a bunch of equipment for GTAT with the understanding that Apple would then buy all the products made by the machinery. When Apple withheld the payment GTAT couldnt pay their creditors (e.g. the people who sold the machinery) so they got screwed.

They got screwed because they couldn't deliver what they contractually promised. If they bet the company on delivering, that's Apple's fault? Apple held a gun to their head and made them sign the contract?

Building contractors must love all you people who don't believe contract terms need to be fulfilled for payments to be made.

If they can't suppress the info, I guess we'll get to see the details. Even if they appear lopsided in favor of Apple, GT SIGNED THE CONTRACT. They could have happily continued on their way without Apple's business.

The CEO cashing out definitely seems fishy and as others have stated, I believe he'll be investigated.
Score: 14 Votes (Like | Disagree)
tucupeis Avatar
143 months ago
i can´t pay you
why?
i can´t tell you
got it
Score: 10 Votes (Like | Disagree)
Mr Fusion Avatar
143 months ago
How exciting. :cool:

Tune in next time on GTRumors...

- "GT Advanced Technologies enters bankruptcy court."
- "GT Advanced Technologies acquired by Apple for pennies on the dollar."
- "Former GT CEO: 'Apple withheld payment in order to bankrupt us and buy us up cheap. I was had!'"

:apple:
Score: 9 Votes (Like | Disagree)
mbh Avatar
143 months ago

It seems that if Cue is as confident as he is about Apple's Fall prospects, why has HE cashed out of his stock?

You can't buy a new Ferrari with AAPL stock. If you're paid mostly in stock options you're going to have to cash some of them out in order to actually buy stuff and pay your taxes. This is normal activity for the company honchos and it has been going on for years. And they have to file a plan to sell their stocks well ahead of time because they obviously have insider information. Guys at Cue's level are operating under a whole different set of rules than us commoners.
Score: 8 Votes (Like | Disagree)
MikeSmoke Avatar
143 months ago
If GT missed the deadline by only a few weeks, how was Apple able to get adequate supplies of Corning glass seemingly on a moments notice?
Score: 7 Votes (Like | Disagree)
HobeSoundDarryl Avatar
143 months ago
I sense some shenanigans here...

GTA's own CEO was reportedly selling off millions of $$$ in shares since the summer. (Doesnt seem that he had much faith in being able to deliver, or he knew something was up.) Either way, I'd be very surprised if the SEC doesn't investigate.
Who at Apple has been talking up "best product pipeline in 25 years besides Cook?"

How many shares was he retaining as of the last time they had to disclose? http://finance.yahoo.com/q/mh?s=AAPL+Major+Holders

I'm not saying the GT guy is or is not a crook but if you are inside a company and you can foresee the possibility of your stock going down, you sell. Or you sell to turn paper (stock) into cash as part of harvesting what you've put into your company.

It seems that if Cue is as confident as he is about Apple's Fall prospects, why has HE cashed out of his stock?

Now click into Cook's shares. He's been selling off shares regularly for the last few weeks. Key word "disposition" (look it up if you need to). At the same time, he's been touting "best product pipeline ever". Why is he selling off shares?

Apple is probably not going into bankruptcy court. But if it surprised us all and did, would we not find similar fault with these insider executives cashing out ahead of the event... especially while simultaneously talking "best product pipeline"? Probably not since this is Apple instead of a non-Apple entity. But the point is that selling off shares by executives to personally profit is relatively normal, whether its non-Apple companies or Apple. I wouldn't be so quick to deem this guy "guilty" because he sold shares.

From my perspective, it looks like a small company got throughly locked into a corner by a big company. For whatever reason, the latter decided not to pay some money that small company expected. The small company was completely locked up in terms of exclusivity so if their ONE client did not pay, they could not make up for the lack of payment by selling to anyone else. Thus, boom.

If you shifted the names of the players so the big company was Samsung or Google or Microsoft and the small company was sent into bankruptcy, would be as quick to try & convict the small company as crook, entirely at fault, etc. Or would we at least be able to see the potential of big company socking it to small company and find at least some fault with the former?

Some of us appear to be practically frothing at the idea of Apple stepping in to acquire this little company for pennies on the dollar. If it was Samsung or others would be as excited to see a small company get gobbled up?

Again, not apologizing for GT: all this remarkably negative speculation against them could all prove out to be true. I'd simply offer that we shouldn't convict before we even have the facts. Apple potentially losing a few hundred million dollars is relatively nothing (how much was Beats again?). On the other hand, about a third of that was apparently enough to drive the small company into bankruptcy court.
Score: 7 Votes (Like | Disagree)