- Apr 12, 2001
GT Advanced Technologies today appeared in a New Hampshire courtroom, asking for non-disclosure in its pending bankruptcy proceedings. According to Reuters, a lawyer for the company told the court that a confidentiality agreement prevented it from disclosing the details surrounding its Chapter 11 bankruptcy.
GT further asked the court to seal select documents referencing a third-party, noting that the disclosure would violate existing confidentially agreements. The publication of these documents could prove costly to the sapphire maker with potential damages of $50 million per violation. GT failed to identify the third-party company, but it almost certainly is Apple, which is known for its strict confidentiality clauses.Luc Despins of Paul Hastings told U.S. Bankruptcy Judge Henry Boroff an unspecified confidentiality agreement prevented GT from disclosing the cause of its bankruptcy, or its plan for dealing with the situation. He also acknowledged the 90 percent drop in the company's stock price in the first three trading days of this week.
GT filed for bankruptcy earlier this week, taking Apple and Wall Street by surprise. Apple reportedly was working with the company to help it remain solvent, but those efforts have failed for the time being and GT will seek to restructure its finances moving forward.
Article Link: GT Argues Inability to Disclose Bankruptcy Details, Citing Confidentiality Agreements