The settlement provides for an auction by Nov. 23 of equipment that GT provided in the effort, the proceeds of which will be divided, GT said in papers filed on Monday in the U.S. Bankruptcy Court in New Hampshire. While GT intends to hang on to some of the equipment—as many as 600 sapphire-making furnaces—it is prepared to auction what it can and abandon what it can’t cart off, court papers say.
Any equipment that GT Advanced is not able to sell will be turned over to Apple. The company will then 'extinguish the loan' it provided to GT.
GT Advanced filed for bankruptcy after a failed attempt to produce sapphire for Apple. The company blames Apple for oppressive and burdensome terms; whereas, Apple says GT failed to meet performance goals.
GT Advanced was supposed to sell the sapphire making furnaces and use some of the profits to pay back Apple; however, it has not been able to find buyers for the equipment. It now believes an auction is the best chance of getting the equipment out the door. A judge will need to approve the deal before it can move forward.
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