Apple and GT Advanced Settle Their Dispute Amicably
GT Advanced and Apple have officially parted ways after settling their dispute amicably, Fortune is reporting. Calling the arrangement “oppressive”, GT failed to meet thresholds for getting the facility up and running, which led Apple to hold back payments in their $500 million deal. Now, GT Advanced will need to sell off equipment to pay Apple.
According to the agreement, which is yet to be approved by the court, GT Advanced would settle its debt to Apple by selling off 2,039 sapphire furnaces. GT will retain ownership of the furnaces in Mesa, Arizona, that it was using to grow sapphire crystals for the screens and lenses of Apple devices. Over the next year however, GT will attempt to sell those furnaces and use the proceeds from those sales to pay its debt to Apple.
Apple, for its part, has agreed to accept an undisclosed portion of those proceeds as full settlement of GT’s debt to Apple, currently valued at $439 million, and waiving all other claims against its former subcontractor. Luc Despins, an attorney representing GT, described the arrangement as “an amicable parting of the ways.” “This is extremely good news for the estate,” he said. “It will save millions of dollars.”
As a condition of the settlement, certain documents that Apple has been fighting to keep out of the public record, would remain sealed and all copies of the so-called Supplemental Squiller Declaration will be destroyed.