Apple Inc (AAPL)

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Apple Told to List Items to Seal in GT Advanced Case
By Dawn McCarty Oct 15, 2014 11:01 PM CT

GT Advanced filed for creditor protection last week without saying why and asked that many details of the case remain under wraps. The company said it faces potential penalties of $50 million for each violation of confidentiality agreements with Apple, with which it had a supply agreement.

The Merrimack, New Hampshire-based company got financial help from Apple to build a plant to make synthetic sapphire, which is used to strengthen mobile-device screens. The latest iPhone models didn’t contain GT Advanced’s product, and the company sought bankruptcy protection Oct. 6.

U.S. Bankruptcy Judge Henry Boroff said at a hearing yesterday in Springfield, Massachusetts, that he was having difficulty finding proprietary information in the papers submitted under seal, which he referred to as a “complex series of agreements.”

“I have documents stacked a foot high,” he said. “It can’t be that all of it needs to be under seal.”

The judge told Michael Walsh, an attorney for Apple, that he wanted “an extremely specific list” of items to remain under seal.

“Tell me what would hurt Apple,” Boroff said, demanding the rundown by noon on Oct. 20.

Separately, a hearing on GT Advanced’s bid to shut down its synthetic-sapphire operations in Arizona and Massachusetts while keeping details of the bankruptcy confidential was pushed to Oct. 21. It had originally been set for yesterday.

GT Advanced, Apple and a newly formed official committee of unsecured creditors consented to the delay, according to filings in U.S. Bankruptcy Court in Manchester, New Hampshire. The hearing was delayed in part to allow the committee to sign confidentiality agreements and get a grasp on the case before Boroff hears motions.

The Oct. 21 proceeding will be held in Springfield because the New Hampshire courthouse isn’t available for a longer hearing.

The case is In re GT Advanced Technologies Inc., 14-11916, U.S. Bankruptcy Court, District of New Hampshire (Manchester).
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