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

(View all)
Avatar
76 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)
Avatar
76 months ago
i can´t pay you
why?
i can´t tell you
got it
Score: 10 Votes (Like | Disagree)
Avatar
76 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)
Avatar
76 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)
Avatar
76 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)
Avatar
76 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

Apple Takes Legal Action Against Small Company With Pear Logo

Saturday August 8, 2020 11:09 am PDT by
Apple is taking legal action against the developers of the app "Prepear" due to its logo, according to iPhone in Canada. Prepear is an app that helps users discover recipes, plan meals, make lists, and arrange grocery deliveries. The app is a spinoff of "Super Healthy Kids," and the founders claim that they are facing litigation from Apple. Apple reportedly takes issue with Prepear's logo, ...

Kuo: Global iPhone Shipments Could Decline Up to 30% If Apple Forced to Remove WeChat From App Store [Updated x2]

Sunday August 9, 2020 10:17 pm PDT by
In a worst-case scenario, Apple's annual global iPhone shipments could decline by 25–30% if it is forced to remove WeChat from its App Stores around the world, according to a new research note from analyst Ming-Chi Kuo viewed by MacRumors. The removal could occur due to a recent executive order aiming to ban U.S. transactions with WeChat and its parent company Tencent. Kuo lays out...

Google Maps Debuts New Apple Watch App and CarPlay Features

Monday August 10, 2020 9:16 am PDT by
Google today announced the launch of several features for Google Maps on Apple products, including new CarPlay functionality and a new Google Maps app that works on Apple Watch. The new Google Maps app for Apple Watch works similarly to the iOS app, allowing Apple Watch owners to get directions for a car, bike, public transit, or on foot. The app supports estimated arrival times and...

2020 iMac Teardown Reveals Internal Changes and Similarities

Saturday August 8, 2020 12:44 pm PDT by
A teardown video, shared by OWC, reveals the internal changes in the new 2020 27-inch iMac. The 2020 27-inch iMac was announced earlier this week with 10th-generation Intel Core processors, AMD Radeon Pro 5000 series graphics, up to 128GB of RAM, up to 8TB of storage, a 1080p front-facing FaceTime camera, a True Tone display with a nano-texture glass option, higher fidelity speakers, and...

Apple Seeds iOS 14 and iPadOS 14 Public Beta 4 to Testers

Thursday August 6, 2020 10:05 am PDT by
Apple today seeded new public betas of upcoming iOS 14 and iPadOS 14 updates to its public beta testing group. Today's software releases, which Apple labels as fourth betas to keep them in line with developer betas, are actually the third betas that Apple has provided and they come two weeks after the prior beta releases. Public beta testers who have signed up for Apple's beta testing...

Apple Believes This German Cycling Path Logo Infringes on Its Own Logo

Wednesday May 1, 2019 9:51 am PDT by
Apple recently objected to the logo of a new German cycling path in an appeal filed with the German Patent and Trademark Office, according to German outlets General-Anzeiger Bonn and Westdeutscher Rundfunk. Apple reportedly takes issue with the logo's green leaf and supposed "bitten" right side, attributes the company believes are too similar to its own logo. The logo, registered with the ...

Supposed iPhone 12 Display Unit Leaks

Thursday August 6, 2020 8:13 am PDT by
An image supposedly of an iPhone 12 display unit has been shared online by leaker "Twitter user Mr. White". Compared to images of an iPhone 11 Pro display piece, this new unit has a reoriented display connector, reaching up from the bottom of the display, rather than from the left-hand side on iPhone 11 Pro. This may be due to the logic board moving to the other side of the device. A...

Foxconn Reportedly Begins Seasonal Hiring Spree for iPhone 12 Production

Monday August 10, 2020 7:03 am PDT by
Apple's largest manufacturing partner Foxconn has begun its seasonal hiring spree to assist with iPhone 12 production, offering employees who recruit qualified applicants up to a 9,000 yuan bonus, according to Chinese media reports. As usual, Foxconn needs as many hands on deck as possible at its factory in Zhengzhou, China to assist with mass production of the upcoming iPhones. Apple is...

8 Third-Party Home Screen Widgets That You Can Try Out Now on iOS 14

Wednesday August 5, 2020 12:56 pm PDT by
One of the biggest new features of iOS 14 is Home Screen widgets, which provide information from apps at a glance. The widgets can be pinned to the Home Screen in various spots and sizes, allowing for many different layouts. When the iOS 14 beta was first released in June, widgets were limited to Apple's own apps like Calendar and Weather, but several third-party developers have begun to test ...

New 27-Inch iMac's Storage Affixed to Logic Board, 4TB and 8TB Configurations Have Expansion Connector

Friday August 7, 2020 7:46 am PDT by
Following a report from German blog iFun.de that claimed the new 27-inch iMac's flash storage is soldered to the logic board, MacRumors has obtained additional information in an internal document for Apple technicians. In the document, Apple says that the flash storage is indeed affixed to the logic board and cannot be removed. However, for the 4TB and 8TB configurations, Apple says that a...