GT Advanced Technology’s exit bankruptcy details were filed in court this week, according to an Apple Insider report based on summary made by The Wall Street Journal earlier this week.
Under the proposal, lenders were asked to put up US $60 million in new debt, and $ 20 million in preferred stock by early 2016.
The sapphire maker has about $ 50 million remaining in bankruptcy loans plus fees that it needs to pay. Ownership of the company will be assigned to creditors.
The company has auctioned some of its sapphire furnaces in Mesa Arizona and Hong Kong from Nov. 23-25, 2015. The deadline to clear out the unused sapphire furnaces has been moved to Dec. 31, 2015.
Earlier last month, Apple reached an agreement with GTAT to settle $439 million in outstanding debt. To finance the payments, GTAT planned to sale its sapphire manufacturing equipment acquired during its defunct partnership with Apple.
Originally, GTAT was to spend $ 900 million to establish an advanced sapphire production facility in Mesa, Arizona, and Apple provided $ 439 million in advance. Sapphire supplied by GTAT were going to be applied in scratch-resistant sapphire for Touch ID fingerprint sensors, iPhone rear camera coverings, and high end Apple Watch covers.
GTAT, though failed to meet Apple’s sapphire quality demands, and the relationship became strained. Last October, GTAT filed for Chapter 11 bankruptcy protection, and has since slashed more than 40% of its work force.
