GT Advanced Technologies Inc fka GTAT

[lecorb]

last report of the day. Where talking about the Q?

GT Advanced Confidentiality Hearing With Apple Delayed -- Update
4:11p ET October 15, 2014 (Dow Jones)


By Peg Brickley
SPRINGFIELD, Mass.-- Apple Inc. supplier GT Advanced Technologies Inc. has delayed a challenge to a court order cloaking information about the troubles believed to be responsible for the sapphire producer's bankruptcy.
In a closed-door session earlier this month in Manchester, N.H., U.S. Bankruptcy Judge Henry Boroff ruled GT could file under seal a declaration believed to contain details of what went wrong between Apple and GT, which Apple said it was considering using as a supplier of sapphire screen material for its newest smartphones.
At a Wednesday court hearing in Springfield, Mass., Judge Boroff told an Apple lawyer that after reviewing the confidential documents, he is "having some difficulty" understanding what should be kept confidential in the documents.
"Tell me what it is that you think can hurt Apple," the judge said in ordering the company to argue why the documents should remain sealed. The judge added he was leaning toward unsealing as much as he could.
Apple offered $578 million worth of financing for GT to manufacture the material. But instead of GT-manufactured sapphire, Apple sent its new iPhones out with Corning Inc.'s Gorilla Glass. GT filed for Chapter 11 bankruptcy protection, giving only a sketchy explanation for the surprise move.
With nearly 900 jobs and $1.3 billion worth of liabilities on the line in the bankruptcy case, GT said it couldn't detail its troubles with Apple publicly without risking having to pay $50 million in damages for violating confidentiality agreements.
However, the company said it is closing its Arizona and Massachusetts factories and seeking court permission to walk away from "oppressive and burdensome" contracts with Apple.
Apple sought permission to file its reply to the contract-rejection motion under seal, "in order to protect the confidential commercial information contained therein and to comply with the terms of its confidentiality agreements with GTAT."
Dow Jones & Co. Inc., the publisher of The Wall Street Journal, has moved to challenge the secrecy in the case, as have U.S. Trustee William Harrington, a Justice Department employee who oversees the bankruptcy courts, and New Hampshire Attorney General Joseph Foster.
Wednesday, just hours before the matter was set to be heard, GT, Apple and the newly appointed official committee of GT's unsecured creditors agreed to delay the substantive parts of the secrecy challenge to Oct. 21.
Judge Boroff said Wednesday Mr. Harrington's office could look at documents that have been filed confidentially, as long as he keeps them private. The judge didn't do the same for the state of New Hampshire attorney general, saying he would have to wait until the judge makes a ruling.
"The state of New Hampshire is an awful lot of people," the judge said.
The committee representing unsecured creditors has hired Kelley Drye & Warren LLP to represent it. Members of the committee include Manz AG, U.S. Bank National Association as bond trustee, Fidelity Financial Trust: Fidelity Convertibles Securities Investment Fund, Elmet Technologies, Inc., Meyer Burger AG, SGL Carbon LLC, and Sanmina Corp.
The hearing was still scheduled for Wednesday afternoon, but the only items remaining on the agenda were "certain stipulations" to three of the six adjourned matters.
Write to Joseph Checkler at [e-mail] and Peg Brickley at [e-mail]