GT Advanced Technology Inc., which struck an agreement with erstwhile partner Apple Inc. last week that allowed it to proceed with its bankruptcy, said that the iPhone maker had threatened to seek damages of more than $1 billion against the company. Former stock market darling GT Advanced, once set to become the main supplier of scratch-resistant sapphire to Apple, surprised markets when it filed for chapter 11 earlier this month. It failed to meet performance targets set out in its supply agreement with Apple, setting the stage for its failure, according to court filings. GT Advanced said in a court filing late on Monday that it needed to settle with the iPhone maker to avert a costly legal battle it might not win. "The alternative to the settlement agreement would be months, if not years, of costly, time-consuming, and distracting litigation with Apple over a wide range of contested issues, the success of which GTAT could not guarantee," the company said in a court filing late on Monday.
http://www.reuters.com/article/2014/10/28/gt-advanced-tech-bankruptcy-a…
In related news, Dow Jones & Co. Inc., publisher of the Wall Street Journal, has asked a court to deny a request by Apple Inc. and GT Advanced Technology Inc. to keep under seal some documents relating to GT Advanced's bankruptcy. Dow Jones, owned by News Corp., said that keeping the documents under seal is an offense to constitutional principles of public access, according to the publisher's court filing yesterday. GT Advanced, which supplied sapphire material to Apple to make smartphone screens, filed for chapter 11 protection earlier this month under mysterious circumstances. GT refused to explain why it had imploded, citing confidentiality clauses in its Apple contracts.
http://www.reuters.com/article/2014/10/29/gt-advanced-tech-bankruptcy-d…