GT Advanced Technologies Inc fka GTAT

[XenaLives]

What happens if through discovery Apple is implicated in the fraud?

The Squiller Declaration in support of the Apple Agreement , Docket number 324, pages 4&5 clearly states the cost to the debtor to develop these technologies, the “fabrication equipment” and indicates that this was the primary reason for the failure of the Mesa Facility, not the “growth equipment” :

9. GTAT’s fabrication costs of the sapphire material grown in the Mesa Facility and Salem Facility furnaces were higher than envisioned, largely because the majority of the fabrication equipment (in contrast to “growth equipment,” i.e., the furnaces) selected for sapphire material could not economically produce a product that Apple would accept. GTAT did not select the fabrication equipment. GTAT was unable to negotiate changes to the pricing regime set forth in the Apple Agreements, and, therefore, GTAT was selling sapphire material at a substantial loss. GTAT’s losses would have increased substantially in 2015 when the price for finished sapphire material was scheduled to decrease under the agreements with Apple. To date, GTAT has incurred approximately $900 million in costs in connection with the Apple project (of which $439 million was funded by the Apple prepayment), and, if the pricing set forth in the Apple Agreements could not be renegotiated, GTAT would never realize a profit.