GT Advanced Technologies Inc. has won approval for its bankruptcy settlement with Apple from Judge Henry Boroff. The settlement comes after a long saga since October when GT Advanced Technologies filed for Chapter 11 bankruptcy, with both Apple and GTAT pointing blame at each other in unsealed court documents.
According to a report on The Wall Street Journal:
The deal uncouples GT Advanced from Apple, and keeps a lid on litigation that could erupt from the corporate breakup that shocked investors unaware that the business relationship was on the rocks.
As part of its agreement, Apple is surrendering most of its claims against GTAT. Under terms of the agreement, GTAT will have four years to sell its sapphire manufacturing furnaces to pay off its debt with Apple.
Until hours before Monday's hearing, opposition from the official committee of unsecured creditors and from a group of bondholders posed a danger to the settlement. To win over balky creditors, Apple agreed to give GT Advanced a larger share of the sales, and more time, rent-free, in a giant Mesa, Ariz., facility, to wrap up the operation.
Source: Wall Street Journal