Judge: GT Advanced bankruptcy details to remain confidential

Investors and creditors were hoping for more information on the recent Chapter 11 bankruptcy filing by GT Advanced Technologies Inc., which had plans of manufacturing synthetic sapphire for use in Apple Inc.'s new smartphone screens. However, a confidentiality agreement with Apple prevents GT from discussing the details of the supply and financing arrangement between the two companies.

A U.S. bankruptcy judge allowed for court papers detailing GT's problems to be sealed. Breaking the confidentiality agreement could result in GT having to pay a third party -- Apple -- $50 million in damages, according to a lawyer for GT. The company reportedly owes $434 million to bondholders and $145 million to trade creditors. GT also had a $578 million financing arrangement with Apple.

According to the bankruptcy judge's order, Apple must be given three days notice if GT intends to publicly discuss the companies' business relationship. The notice will give Apple time to obtain a court order that prohibits public disclosure of information. In addition to sealing court documents, the judge instructed GT to file a motion requesting the wind-down of operations at the company's manufacturing facilities.

GT is expected to file other motions seeking to end leases and contracts related to the company's operations. A hearing on the wind-down is scheduled for Oct. 15 in Massachusetts.

A lawyer for GT said that the company is expected to accumulate about $152 million in total net operating losses by the end of the year, resulting in a potential $50 million in tax breaks.

The Wall Street Journal has more on the case.

For more on reorganization through bankruptcy, please visit our Chapter 11 overview. Attorneys at Shulman, Hodges & Bastion LLP provide legal guidance to creditors, creditor committees, debtors and trustees.

No Comments

Leave a comment
Comment Information
  • NBLSC Board Certified Lawyer Rated By Super Lawyers | Ryan P. Durham Rated By Super Lawyers | Ben Boston
  • Tennessee Association For Justice | Member 2015-2016 American Association For Premier DUI Attorneys The National Trial Lawyers | Top 100 Trial Lawyers
  • American Institute of Family Law Attorneys | 10 best 2015 American Institute of Personal Injury attorneys | 10 best 2016

Schedule a Consultation Today

Bold labels are required.

Contact Information

The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.


Privacy Policy

Shulman Bastian LLP | Full Service. Business. Lawyers.

100 Spectrum Center Drive
Suite 600
Irvine, CA 92618

Map & Directions

3550 Vine Street
Suite 210
Riverside, CA 92507

Map & Directions