GT Advanced Technology’s (GTAT) recently carried out major job cuts, and intends to take legal action against former partner Apple, according to a Reuters report.
Following the company’s bankruptcy announcement last Monday, GTAT has laid off 890 employees on Oct. 9 in an attempt to put a stop to its bleeding finances. The shutdown of certain operations was necessary to save the company from burning US $1 million per day, said GTAT.
Last Thursday, GTAT revealed plans of winding-down its sapphire business, which fell short of Apple supply demands.
Legal actions will be taken against former partner Apple to terminate contract agreements that are “burdensome and of no value,” GTAT told Reuters.
GTAT has remained mum about the actual events involved that led to the bankruptcy, or why relations soured with Apple. Lawyer Luc Despins of Paul Hastings, who is representing GTAT, has repeatedly stated confidentiality agreements signed with Apple has prevented publicizing bankruptcy filing details.
GTAT’s sealing request is fairly complicated, said Despins. ““It’s like a Russian doll. You open the first one and there are four more in there," he said.
However, GTAT’s lack of disclosure has been criticized by Ann Marie Dirsa, a lawyer from the Office of the U.S. Trustee.
“The record is insufficient for the court to find what the court needs to find,” she said.
U.S. Bankruptcy Judge Henry Boroff has ruled GTAT should provide reasonable information related to the case, with the exception of information relating to “the details of the debtor’s business relationship with Apple.”
Information in such cases must be disclosed to Apple lawyers three days beforehand, ruled Boroff. This will give Apple the right to block sensitive information from being revealed in court.
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