Boston, MA 10/15/2014 (wallstreetpr) – According to reports, a hearing on GT Advanced Technologies Inc (NASDAQ:GTAT)‘s sealed documents case has been delayed. As per the information, GTAT registered a bid to close down synthetic-sapphire operations with immediate effect, but it did not disclose any detail about its bankruptcy. A hearing on this case was supposed to take place today, but now it has been pushed to October 21, 2014.
Insights of the matter:
As per the information Apple Inc. (NASDAQ:AAPL), GT Advanced Technologies Inc (NASDAQ:GTAT) and one newly formed unsecured creditors’ committee gave their consents for this delay. Information was revealed by papers that were filed in U.S. Bankruptcy Court in Manchester. GTAT filed a report for a Chapter 11 protection on October 6, 2014 stating what all things drove it towards bankruptcy. Most of the issues stated in the file are related to confidential agreements that were signed by GTAT and AAPL. Violation of each agreement can cost the company as much as $50 million.
Last year, GT Advanced Technologies Inc (NASDAQ:GTAT) made an announcement regarding its deal with Apple Inc. (NASDAQ:AAPL), according to which, it would be supplying synthetic sapphire to smartphones company. Synthetic sapphire is used in smartphones, tablets and smart-watch in order to strengthen their screens. There was a talk going on in the industry regarding synthetic sapphire’s use in iPhone6, but it wasn’t used in the latest generation of iPhone6 and iPhone6S due to certain reasons.
Another reason of delay can be Merrimack’s motions to reject a few leases and contracts. Apple Inc. (NASDAQ:AAPL) filed a case objecting those motions immediately after this issue. As per the information, that case has also been delayed by the authorities.
All the investors, creditors and Justice Department Members will have to wait for at least one more week to know why GT Advanced Technologies Inc (NASDAQ:GTAT) filed for bankruptcy within a year of signing multi-year contract with world’s largest smartphones manufacturing company.
