Apple Objects to GT Advanced’s Financial Planning Following Facility Fire
According to a new report from Recode, Apple is objecting to GT Advanced Technologies’ financial plan over concerns that it would undermine its existing settlement that they reached with the bankrupt sapphire crystal supplier last year.
GT Advanced reached a settlement with Apple in October 2014 after failing to produce sapphire crystal of the quality desired by the Cupertino-based company.
GT Advanced is attempting to restructure by raising $95 million though a loan agreement under the supervision of the U.S. Bankruptcy Court. However, the financial plan is contingent upon the company receiving enough insurance money to repair any damages to their sapphire furnaces caused by a fire at their Arizona facility.
Apple says that GT Advanced already determined that the damages at their facility was minimal, adding that the terms of the loan give lenders too much leverage to foreclose on the sapphire furnaces that GT Advanced is supposed to sell in order to repay Apple.
GT Advanced filed for bankruptcy last October after it became clear that the company was spending over one million dollars per day to run its operations.