GT Advanced Technologies Inc (NASDAQ:GTAT) is close to reaching an agreement with Apple Inc. (NASDAQ:AAPL) to resolve a dispute over confidentiality.
During a hearing at the U.S. Bankruptcy Court in Springfield Massachusetts, Luc Despins, the lawyer representing GT Advanced Technologies Inc (NASDAQ:GTAT) expressed optimism that an agreement could be reach soon between the companies regarding the disclosure of details.
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GT Advanced Technologies Inc (NASDAQ:GTAT) filed for chapter 11 bankruptcy on October 6, which shocked the Wall Street and wiped-out its stock value. The Wall Street were surprise because it has a multiyear agreement with Apple Inc. (NASDAQ:AAPL) to make scratch-resistant sapphire glass for its products.
GT Advanced signed strict confidentiality agreement with Apple
Since filing for bankruptcy, GT Advanced Technologies Inc (NASDAQ:GTAT) requested the court to seal crucial documents related to the case, which was considered highly-unusual by market observers. Generally, companies reveal the reasons behind their bankruptcy in key court filings.
GT Advanced Technologies Inc (NASDAQ:GTAT) explained to the court that the secrecy due to its strict confidentiality agreement with Apple Inc. (NASDAQ:AAPL). Atty. Despins said the confidentiality agreement prevented GT Advanced to disclose the reasons behind the bankruptcy and its turnaround plans.
GT Advanced Technologies Inc (NASDAQ:GTAT) would pay a penalty of $50 million for leaking information related to the products of Apple Inc. (NASDAQ:AAPL), based on court documents.
Last week, GT Advanced stated that Apple’s supplier agreement was “oppressive and burdensome.” According to reports, the lawyers representing the company want to reveal more information about the policies of the iPhone maker in dealing with suppliers including the huge penalty for leaked information.
Judge wants to disclose as many details related to GT Advanced bankruptcy
ValueWalk recently reported that Judge Henry Boroff intends to unseal as many confidential documents as possible related to the bankruptcy case of GT Advanced Technologies Inc (NASDAQ:GTAT).
Judge Boroff requested Apple Inc. (NASDAQ:AAPL) to tell him which documents could hurt the iPhone maker if revealed. The judge made the statement after sorting through the confidential documents and experienced “some difficulty” understanding which documents should remain sealed.