Published in Mobiles

Apple and GT Advanced appear to bury the hatchet

by on22 October 2014



Protecting Apple’s secrets

GT Advanced Technologies has buried the hatchet with Jobs’s Mob and agreed to dissolve their partnership amicably. GT filed a surprising bankruptcy claim earlier this month and the proceedings threatened to expose information about Apple's dealings with the outfit -- something Apple desperately wanted to hide.

Now it seems that we will never know what Apple wanted to bury as the pair have decided to keep the terms of their relationship private indefinitely. As the Wall Street Journal reported, “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.”

GT's attorney Luc Despins told the WSJ that the proposed settlement would allow the bankrupt supplier to try to sell the furnaces at the sapphire-manufacturing facility that Apple helped GTAT buy. All proceeds from the sale would then go to Apple. GT Advanced also agreed to surrender its claims against Apple “and agree not to disparage the technology giant.” GT has said that breaking its secrecy agreements with Apple could put it on the line for $50 million in damages.

Several parties, including shareholders, investors, and Dow Jones Inc., the parent company of the WSJ, had challenged Apple's motions to file information under seal. Those parties say that investors have a right to know why the company failed so suddenly.

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