GT Advanced Technologies confirms settlement with Apple

image GT Advanced

Confirming earlier reports that GT Advanced Technologies and Apple had agreed on terms of a settlement, the supplier has confirmed the move with an official press release.

On Thursday, October 23, GT Advanced confirmed via press release that the company had worked out terms of a settlement with Apple that would see them part ways with the Cupertino-based company, but also work to repay their debt owed within a certain period of time. As noted in the release, these terms are subject to the approval of the bankruptcy court, but if they do go through then that would mean GT Advanced will be released from all of their exclusivity obligations under their original agreement with Apple.

Under the terms of the settlement agreement, which is subject to approval by the Bankruptcy Court, GT will be released from all exclusivity obligations under its various agreements with Apple. GT will retain ownership of all production, ancillary and inventory assets located in Mesa and Apple is provided with a mechanism for recovering its $439 million pre-payment made to GT over a period of up to four years without interest, solely from a portion of the proceeds from ASF® sales. The agreement provides for a mutual release of any and all claims by both parties. As a result of the agreed upon terms, GT retains control of its intellectual property and will be able to sell its sapphire growth and fabrication technology, including ASF and Hyperion™, without restrictions.

As a result of the settlement, GT Advanced will be given up to four years, of which will be interest-free, to repay their debt to Apple. The total debt owed, according to the release, is $439 million. And, while GT Advanced had originally pushed to continue business as usual when they first filed for Chapter 11 bankruptcy, the company has confirmed that they will halt their sapphire production business from here on out, and sell all of their assets in an effort to pay Apple back.

[via GTAT]