Apple, Sapphire Supplier Reach Agreement Over USD439 Million Debt

Apple Inc and former supplier GT Advanced Technologies Inc reportedly come to terms in a deal regarding the latter’s USD439 million debt it still owes to the tech giant. Wall Street Journal reports that GT will have to sell off 1,400 of its 2,000 sapphire-making furnaces that it had purchased ahead of its sapphire glass production for screens on majority of Apple’s products. Although the deal will have to seek approval from a bankruptcy judge, the news site said the proceeds will both benefit both parties, since it will be split evenly.

Ars Technica recalls that in late 2013, GT was contracted by Apple to provide the sapphire glass displays for its iPhones and other gadgets. The sapphire glass display was to make its debut on the iPhone 6, but came with a glass display instead. A few weeks later after the iPhone 6 launch, GT then filed for bankruptcy, with both companies complaining of each other’s failures in its initial supplier agreement.

Citing court documents filed in New Hampshire on Monday, ValueWalk said GT is set to auction off the furnaces by November 23 prior to the equipment move-out deadline, which is on December 31st.