Bankrupt GTAT may go after “oppressive” Apple

After filing for Chapter 11 bankruptcy protection on October 6, sapphire display manufacturer GT Advanced Technologies (GTAT) is apparently planning to go after tech giant Apple, with the argument that the company's bankruptcy resulted from the workload imposed by the production of sapphire display panels for the iPhone 6 and Apple Watch.

GTAT was seemingly bogged down by its $578 million "oppressive and burdensome" contract with Apple for sapphire display production. The company cannot divulge the details with regard to its fallout with Apple because that would amount to a breach of confidentially agreement, and would entail a $50 million penalty.

Nonetheless, speculating what might have transpired between GTAT and Apple, Mark Spoonauer - editor-In-chief at Tom's Guide - said in a recent statement that GTAT probably failed to reach some "technical milestones" which were required for Apple to pay the rest of its loan out in order for GTAT to finish the production of sapphire displays for Apple's devices.

In the opinion of market watchers, Apple planned to use sapphire display on its latest iPhone 6 handsets, but GTAT could seemingly not keep pace with the company's demand. As such, there was a fall out between the two partners; leading GTAT to subsequently file for bankruptcy protection.

Meanwhile, though GTAT has asserted that it does not intend to leak any details about Apple's new devices, GTAT's lawyers are likely attempting to use some pertinent information for proving that Apple was an "oppressive" company which can wield "disproportionate power" due to its "demands for secrecy."


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