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Apr 12, 2001
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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.
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 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.

gt_advanced_logo.jpg
GT's lawyers also asked that the proceedings be closed to the public as part of what they agree is an "unusual (and perhaps unprecedented)" request. Lawyers from the Department of Justice denounced GT's motions, saying "the record is insufficient for the court to find what the court needs to find."

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
 
Something shady here.

They certainly want to keep their mismanagement and ineptitude under wraps and hidden from shareholders, while not pissing off Apple at the same time.

Anyone that bought this stock recently got reamed big time.
 
How exciting. :cool:

Tune in next time on GTRumors...

- "GT Advanced Technologies enters bankruptcy court."
- "GT Advanced Technologies acquired by Apple for pennies on the dollar."
- "Former GT CEO: 'Apple withheld payment in order to bankrupt us and buy us up cheap. I was had!'"

:apple:
 
I sense some shenanigans here...

GTA's own CEO was reportedly selling off millions of $$$ in shares since the summer. (Doesnt seem that he had much faith in being able to deliver, or he knew something was up.) Either way, I'd be very surprised if the SEC doesn't investigate.
 
It seems pretty obvious they went bankrupt because Apple didn't put GTAT's sapphire screens in the new iphone but they can't disclose that because Apple had them sign a confidentiality agreement.

This should be an interesting case for Apple fanboys to follow because if the creditors have their way, there will be a lot of disclosure regarding Apple's plans with Sapphire.
 
How exciting. :cool:

Tune in next time on GTRumors...

- "GT Advanced Technologies enters bankruptcy court."
- "GT Advanced Technologies acquired by Apple for pennies on the dollar."
- "Former GT CEO: 'Apple withheld payment in order to bankrupt us and buy us up cheap. I was had!'"

:apple:

GT owes Apple over 500 million. Apple holding a payment isn't what screwed them over.
 
I find it hard to believe a company that size would obtain counsel that is not familiar with bankruptcy. AFAIK (and noting I am not a lawyer), the Atomic Energy Act and associated NRC regulations are the only things a bankruptcy judge cannot examine/break/change at his discretion. Presumably there are some secret national security laws that fall into that category as well, but a confidentiality agreement with a consumer products company? I'd like to see a citation to the section that says that can be kept secret in BK.
 
GT owes Apple over 500 million. Apple holding a payment isn't what screwed them over.

It sort of is. Apple agreed to finance a bunch of equipment for GTAT with the understanding that Apple would then buy all the products made by the machinery. When Apple withheld the payment GTAT couldnt pay their creditors (e.g. the people who sold the machinery) so they got screwed.
 
It sort of is. Apple agreed to finance a bunch of equipment for GTAT with the understanding that Apple would then buy all the products made by the machinery. When Apple withheld the payment GTAT couldnt pay their creditors (e.g. the people who sold the machinery) so they got screwed.

They got screwed because they couldn't deliver what they contractually promised. If they bet the company on delivering, that's Apple's fault? Apple held a gun to their head and made them sign the contract?

Building contractors must love all you people who don't believe contract terms need to be fulfilled for payments to be made.

If they can't suppress the info, I guess we'll get to see the details. Even if they appear lopsided in favor of Apple, GT SIGNED THE CONTRACT. They could have happily continued on their way without Apple's business.

The CEO cashing out definitely seems fishy and as others have stated, I believe he'll be investigated.
 
It sort of is. Apple agreed to finance a bunch of equipment for GTAT with the understanding that Apple would then buy all the products made by the machinery. When Apple withheld the payment GTAT couldnt pay their creditors (e.g. the people who sold the machinery) so they got screwed.

(my emphasis in the above)

I think there was likely an addition in there something along the lines of "provided the yield results of the product meet our requirements / expectations", and I would suspect those would be very high.

It could be that GT had thought they could product the levels that would be required, but then found, after the ink was dry, that they could not, and likely worked to try and get the yields to where Apple was happy, but for some reason could not, and thus they could not meet the requirements of the contract, which in turn meant no payment from Apple, no sapphire on the iPhone 6 range, and GT having a very large shortfall, resulting in C11.

Other's comments about the CEO dumping stock, I seem to recall there was something about a specific sell off deal which had been brokered a fail while ago, so at least one of them wasn't a completely out of the blue event.
 
I sense some shenanigans here...

GTA's own CEO was reportedly selling off millions of $$$ in shares since the summer. (Doesnt seem that he had much faith in being able to deliver, or he knew something was up.) Either way, I'd be very surprised if the SEC doesn't investigate.

Actually, the sale of the CEO's shares was part of a plan filed with the SEC earlier this spring.
 
Something shady here.

They certainly want to keep their mismanagement and ineptitude under wraps and hidden from shareholders, while not pissing off Apple at the same time.

Anyone that bought this stock recently got reamed big time.

I guess we will soon see where that money really went.
 
I sense some shenanigans here...

GTA's own CEO was reportedly selling off millions of $$$ in shares since the summer. (Doesnt seem that he had much faith in being able to deliver, or he knew something was up.) Either way, I'd be very surprised if the SEC doesn't investigate.

Who at Apple has been talking up "best product pipeline in 25 years besides Cook?"

How many shares was he retaining as of the last time they had to disclose? http://finance.yahoo.com/q/mh?s=AAPL+Major+Holders

I'm not saying the GT guy is or is not a crook but if you are inside a company and you can foresee the possibility of your stock going down, you sell. Or you sell to turn paper (stock) into cash as part of harvesting what you've put into your company.

It seems that if Cue is as confident as he is about Apple's Fall prospects, why has HE cashed out of his stock?

Now click into Cook's shares. He's been selling off shares regularly for the last few weeks. Key word "disposition" (look it up if you need to). At the same time, he's been touting "best product pipeline ever". Why is he selling off shares?

Apple is probably not going into bankruptcy court. But if it surprised us all and did, would we not find similar fault with these insider executives cashing out ahead of the event... especially while simultaneously talking "best product pipeline"? Probably not since this is Apple instead of a non-Apple entity. But the point is that selling off shares by executives to personally profit is relatively normal, whether its non-Apple companies or Apple. I wouldn't be so quick to deem this guy "guilty" because he sold shares.

From my perspective, it looks like a small company got throughly locked into a corner by a big company. For whatever reason, the latter decided not to pay some money that small company expected. The small company was completely locked up in terms of exclusivity so if their ONE client did not pay, they could not make up for the lack of payment by selling to anyone else. Thus, boom.

If you shifted the names of the players so the big company was Samsung or Google or Microsoft and the small company was sent into bankruptcy, would be as quick to try & convict the small company as crook, entirely at fault, etc. Or would we at least be able to see the potential of big company socking it to small company and find at least some fault with the former?

Some of us appear to be practically frothing at the idea of Apple stepping in to acquire this little company for pennies on the dollar. If it was Samsung or others would be as excited to see a small company get gobbled up?

Again, not apologizing for GT: all this remarkably negative speculation against them could all prove out to be true. I'd simply offer that we shouldn't convict before we even have the facts. Apple potentially losing a few hundred million dollars is relatively nothing (how much was Beats again?). On the other hand, about a third of that was apparently enough to drive the small company into bankruptcy court.
 
I'm not saying the [person] is or is not a crook but if you are inside a company and you can foresee the possibility of your stock going down, you sell. Or you sell to turn paper (stock) into cash as part of harvesting what you've put into your company.

Any financial adviser in the world will tell you that if you have a dividable asset that gains substantially in value - for example, a bunch of stock and stock options - that you should sell x% of it and invest it in non-related assets to diversify your risk. We also have no way of knowing if any of the subject persons had expenses such as college tuition due that he/she needed cash to meet.
 
GT really is between a rock and a hard place here with the contract they signed with Apple. Between being able to hold up their end of the contract (if that's the issue) and also having a $50M per incident of broken confidentiality - they're pretty stuffed no matter what.
 
YES! I woke up this morning and said to myself, "Boy, I really hope MacRumors has a new story on GT Technologies today!" I was so heartbroken when I checked and there was nothing, but now, my life has meaning again!

:rolleyes:
 
Any financial adviser in the world will tell you that if you have a dividable asset that gains substantially in value - for example, a bunch of stock and stock options - that you should sell x% of it and invest it in non-related assets to diversify your risk. We also have no way of knowing if any of the subject persons had expenses such as college tuition due that he/she needed cash to meet.

Exactly, there's nothing wrong with selling stock in your company if that's what you want to do. These threads are all loaded with comments spinning it like it's a smoking gun. Pointing out that the Apple executives are selling shares of AAPL should make a point, especially with the PR of "best product pipeline". If they believe the latter, why sell in the last few weeks? Why not hold a little longer to take advantage of the lift of "best product pipeline" and then sell at a greater profit? Maybe they just wanted the money? Maybe it's a part of a long-term strategy to sell at certain points in time? Maybe it a lot of things other than they are cashing out before the collapse and/or they are just evil... which should apply to this particular view of the GT CEO too (if much of the speculation is built upon him selling shares).
 
It seems that if Cue is as confident as he is about Apple's Fall prospects, why has HE cashed out of his stock?

You can't buy a new Ferrari with AAPL stock. If you're paid mostly in stock options you're going to have to cash some of them out in order to actually buy stuff and pay your taxes. This is normal activity for the company honchos and it has been going on for years. And they have to file a plan to sell their stocks well ahead of time because they obviously have insider information. Guys at Cue's level are operating under a whole different set of rules than us commoners.
 
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