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.

Top Rated Comments

UnfetteredMind Avatar
89 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
89 months ago
i can´t pay you
why?
i can´t tell you
got it
Score: 10 Votes (Like | Disagree)
Mr Fusion Avatar
89 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
89 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
89 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
89 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)

Top Stories

REC ASA CODE2016 20160601 205816 2745

Elon Musk Reportedly Demanded to Become Apple CEO as Part of Potential Tesla Acquisition [Update: Musk Denies]

Friday July 30, 2021 9:04 am PDT by
Tesla CEO Elon Musk reportedly once demanded that he be made Apple CEO in a brief discussion of a potential acquisition with Apple's current CEO, Tim Cook. The claim comes in a new book titled "Power Play: Tesla, Elon Musk and the Bet of the Century," as reviewed by The Los Angeles Times. According to the book, during a 2016 phone call between Musk and Cook that touched on the possibility of ...
General Apps Messages

Android iMessage Competitor Puts Pressure on Apple

Friday July 30, 2021 3:15 am PDT by
Google and the three major U.S. carriers, including Verizon, AT&T, and T-Mobile, will all support a new communications protocol on Android smartphones starting in 2022, a move that puts pressure on Apple to adopt a new cross-platform messaging standard and may present a challenge to iMessage. Verizon recently announced that it is planning to adopt Messages by Google as its default messaging...
Apple watch series 5 new case material made of titanium 091019

Titanium Apple Watch Series 6 Models Currently Widely Unavailable

Sunday August 1, 2021 6:21 am PDT by
Models of the Apple Watch Series 6 with titanium cases part of the "Apple Watch Edition" collection is currently widely unavailable for pick-up in several of Apple's retail stores in the United States and is unavailable entirely for delivery in major markets. Noted by Bloomberg's Mark Gurman in the latest edition of his "Power On" newsletter, titanium models of the Apple Watch Series 6,...
ifixit iphone12 mini

Apple to Make Space for Larger Batteries in iPhones, iPads, and MacBooks By Adopting Slimmer Peripheral Chips

Monday August 2, 2021 2:12 am PDT by
For future iPhones, iPads, and MacBooks, Apple plans to use smaller internal components in an effort to increase the size of the device's battery, according to DigiTimes. Image Credit: iFixit Specifically, Apple plans to "significantly increase the adoption" of IPDs or integrated passive devices for the peripheral chips in its products. These news chips will be slimmer in size and allow for...
Flat 2021 MacBook Pro Mockup Feature

Unreleased Apple Macs and Apple Watches Listed in Eurasian Database Ahead of Fall Product Launches

Monday August 2, 2021 9:34 am PDT by
Apple is preparing for a slew of fall product launches according to new filings that showed up today in the Eurasian Economic Commission database. There are listings for new Mac and Apple Watch models, all of which have previously unknown model identifiers that indicate that they're upcoming devices. There are six new Apple Watch identifiers, including A2473, A2474, A2475, A2476, A2477, and...
a15 chip

iPhone 13 and Redesigned MacBook Pro Chip Production Hit With Gas Contamination

Friday July 30, 2021 5:44 am PDT by
The most important TSMC factory that manufactures Apple's chips destined for next-generation iPhone and Mac models has been hit by a gas contamination, according to Nikkei Asia. The factory, known as "Fab 18," is TSMC's most advanced chipmaking facility. TSMC is Apple's sole chip supplier, making all of the processors used in every Apple device with a custom silicon chip. Industry...
iPhone 13 Wi Fi 6E feature update

Wi-Fi 6E Explained: What It Could Mean for iPhone 13 and Beyond

Monday August 2, 2021 8:00 am PDT by
The iPhone 13 is widely expected to come with Wi-Fi 6E capabilities, and while it may seem rather nuanced to the average consumer, with only improved speeds and being "up to date" in the realm of Wi-Fi technology, it's actually a fairly significant improvement, laying the groundwork for much of what we know the future holds. To truly understand Wi-Fi 6E, MacRumors sat down for an exclusive...
youtube premium lite

YouTube Tests Cheaper 'Premium Lite' Subscription for Ad-Free Viewing

Monday August 2, 2021 3:22 am PDT by
YouTube is piloting a new cheaper subscription tier in Europe called "Premium Lite," which offers ad-free viewing minus YouTube Premium's other features. First spotted by a user on ResetEra and subsequently confirmed by Google, the "Lite" plan means users who aren't interested in offline downloads or background playback can still enjoy YouTube videos on web and mobile app without being...
iPhone 13 Always On Feature

iPhone 13 to Bring Over a Major Feature From the Apple Watch

Wednesday July 28, 2021 2:21 am PDT by
Apple's upcoming iPhone 13 lineup will feature an always-on display akin to the Apple Watch Series 5 and Series 6, according to recent reports. In his weekly Power On newsletter, Bloomberg journalist Mark Gurman, who often reveals accurate insights into Apple's plans, said that the iPhone 13 may feature an Apple Watch-inspired always-on mode. The Apple Watch Series 5 and Apple Watch...
COVID19 Digital Wallet Apple Wallet

Australian Government Now Offering COVID-19 Digital Vaccination Certificates for Apple Wallet

Monday August 2, 2021 12:04 am PDT by
The Australian government has introduced support for adding COVID-19 vaccination digital certificates to Apple Wallet via the Express Plus Medicare app on iOS. Image credit: Tap Down Under As spotted by Tap Down Under, users who have received two doses of either the AstraZeneca or Pfizer vaccine now have access to the digital certificate through their Medicare online account or via the Medica...