Following a report last week that Apple was seeking to keep its involvement in its sapphire supplier GT Advanced’s Chapter 11 bankruptcy filing secret, today Bloomberg reports that GT Advanced and Apple have reached an agreement that will allow the two companies to part ways. Lawyers for GT Advanced said the deal “will save millions of dollars and solve most issues” and be an “amicable parting of ways,” according to the report.
GT Advanced Technologies (Nasdaq: GTAT) (OTCBB: GTATQ) attorney says consensual accord with Apple (Nasdaq: AAPL) reached. The lawyer calls it an ‘amicable parting of ways.’ The accord will save millions of dollars and solve most issues… The agreement will be filed with minor redaction.
In addition, a lawyer for GT Advanced has said that Apple will be paid as part of the agreement after the company sells sapphire furnaces it originally purchased for its Arizona plant that Apple was invested in. According to Fortune’s Philip Elmer-DeWitt who is covering the case, GT will use cash from the sale of the furnaces to pay a $439 million owed to Apple.
The news follows a report earlier this month that GT Advanced had informed over 700 employees that it would wind down operations at its Mesa, Arizona plant in December.
The deal reached today with Apple will reportedly also allow GT Advanced to “wind down operations and pay incentives to certain employees,” Bloomberg said.
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