Apple raises objections to potential GT Advanced financing plan

Apple has objected to a recent financing proposal by one-time partner GT Advanced Technologies. Though Apple supports a financing plan for GT, it feels that some provisions in the current plan, related to the fire at GT’s Arizona facility in May, may leave GT Advanced stuck in a position where it could default on its settlement with Apple.

From Re/code:

Under these loan terms, Apple asserts its former supplier will be placed in the difficult position of choosing “between defaulting on the [loan agreement] or the Apple Settlement Agreement.” That settlement dealt with the companies’ differences over a failed effort to durable, scratch-resistant smartphone screen material.

GT Advanced is seeking to collect money from their insurance company to repair any damage to their sapphire furnaces, which it has been hoping to sell in order to pay off their debt to Apple. The two companies reached a settlement late last year after Apple broke off an agreement with GT Advanced for sapphire crystal, following the latter company’s inability to produce sapphire in the quantities that Apple required.

Source: Re/code

Source: iMore

About Bhavesh Rabari

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