More secrets could come from GT Advanced bankruptcy as Apple divulges details to creditors
Secret documents being shared by Apple with creditors of former sapphire partner GT Advanced Technologies could become a matter of public record next month, as part of the ongoing bankruptcy proceedings.
Though the information being shared by Apple remains out of the public eye, the creditors could decide to use some of it to challenge the bankruptcy ruling. In that event, it's likely that the details would not be kept secret by the judge overseeing the case, The Wall Street Journal reported on Tuesday.
"I don't want to get into the sealing business again if I don't have to," Judge Henry Boroff said in court, making it clear that more of Apple's secrets could come out as a result of the bankruptcy hearing.
Apple initially fought to keep a number of documents secret in the case, but ultimately conceded and agreed to unseal a number of secret documents in order to comply with the bankruptcy settlement.
The secret documents revealed the terms of Apple's extensive non-disclosure agreements with suppliers. For example, suppliers are prohibited from mentioning Apple by name during their daily operations, and the project itself is given a code-name.
Apple suppliers are also required to lock down their operations with a qualified security team, 24/7 security cameras, sensors, a personal identification credential screening, and vehicle markings. Suppliers must also agree to be audited by Apple at any time, providing access to information systems, facilities, and personnel that work for the company.
Creditors are currently reviewing the documents provided to them by Apple ahead of a December court date. In the event that creditors believe the terms of the bankruptcy agreement are not in their favor, they could present some of Apple's confidential documents as evidence to bolster their case.
The creditors have already alleged that Apple breached its contract with GT Advanced Technologies. GTAT noteholders including Aristeia Capital and Sumitomo asked for and received an extension earlier this month, pushing back the approval date for the settlement with Apple.
Following its bankruptcy filing in October, GT Advanced has said its arrangement with Apple was a "classic bait-and-switch" deal that favored the Cupertino, Calif., company. For its part, Apple said it "bent over backwards" to help the supplier, which failed to deliver sufficient quantities of scratch-resistant sapphire material as was agreed upon.
Though the information being shared by Apple remains out of the public eye, the creditors could decide to use some of it to challenge the bankruptcy ruling. In that event, it's likely that the details would not be kept secret by the judge overseeing the case, The Wall Street Journal reported on Tuesday.
"I don't want to get into the sealing business again if I don't have to," Judge Henry Boroff said in court, making it clear that more of Apple's secrets could come out as a result of the bankruptcy hearing.
Apple initially fought to keep a number of documents secret in the case, but ultimately conceded and agreed to unseal a number of secret documents in order to comply with the bankruptcy settlement.
The secret documents revealed the terms of Apple's extensive non-disclosure agreements with suppliers. For example, suppliers are prohibited from mentioning Apple by name during their daily operations, and the project itself is given a code-name.
Apple suppliers are also required to lock down their operations with a qualified security team, 24/7 security cameras, sensors, a personal identification credential screening, and vehicle markings. Suppliers must also agree to be audited by Apple at any time, providing access to information systems, facilities, and personnel that work for the company.
Creditors are currently reviewing the documents provided to them by Apple ahead of a December court date. In the event that creditors believe the terms of the bankruptcy agreement are not in their favor, they could present some of Apple's confidential documents as evidence to bolster their case.
The creditors have already alleged that Apple breached its contract with GT Advanced Technologies. GTAT noteholders including Aristeia Capital and Sumitomo asked for and received an extension earlier this month, pushing back the approval date for the settlement with Apple.
Following its bankruptcy filing in October, GT Advanced has said its arrangement with Apple was a "classic bait-and-switch" deal that favored the Cupertino, Calif., company. For its part, Apple said it "bent over backwards" to help the supplier, which failed to deliver sufficient quantities of scratch-resistant sapphire material as was agreed upon.
Comments
The National Equirer will reveal that Apple has access to alien technology.
However it's becoming clear that GT Advanced also misrepresented the maturity of their technology and abilities.
I worked for a small company selling sapphire screen protectors for iPhone 5/5s and iPhone 4/4s. We were buying them directly from GT Advanced and our orders were small (less than 100 at a time). I have a hard time imagining a company that did that kind of business would be mature enough to supply sapphire screens for Apple.
Remember what happened when Apple shared it's secrets -prototypes- with Microsoft? Where did Apple go after that? Eventually to the very bottom. So in my opinion (and mine don't have to be everyone's opinion) the race is on (by companies like GT Advanced). Whoever cracks Apple's secrecy will gain a huge business and technology advantage. Think of what can happen! Other companies can start asking the government to ask companies like Apple stop the way they do many business procedures, contracts with other companies, etc. Eventually making it difficult for companies like Apple to stay focused on manufacturing and innovating, cause they'll eventually be super busy defending themselves in court against almost every technology company in the world that wants a piece of the action. The verdict of this case can change history more than the verdict from the Apple vs Samsung case.
So what's my point? That it is very very sad and disappointing to see companies like GT Advanced behaving like little children. Showing everyone that they way they act is: "I will win by destroying others". Instead of: "I will just try to give the best service possible and will try to make the best product possible".
Embarrassing, these are supposed to be mature adults managing these companies. Don't they have any shame? Oh! And as always, the ones that really lose are the employees. Embarrassing.... just embarrassing.
Yep. It's a bunch of boule-sh*t.
Anyone know who at Apple was the DRI for the GT relationship?
What does it matter? Ultimately, the responsibility of the partnership would be fall on someone at the senior VP level or higher.
In fact, because Apple loaned GT Advanced $439 million, the buck really stops with CEO Tim Cook. He's the only one who could authorize such a sum.
Yes, it seems as though the entire problem was that they couldn't produce what they promised to produce. Everything else falls in comparison.
Tim only authorizes purchases of one billion dollars or higher, otherwise the VP's have discretion to throw around a few hundred million when they want.
It isn't relevant.
I still want to know how the GTAT board payed themselves millions just before filing is legal.
Anyone know who at Apple was the DRI for the GT relationship?
That's on the QT
GT Advanced isn't trying to destroy anyone. It's more like they're drowning and pulling down anyone close enough to them to stay afloat. It's not in their interests to force Apple to reveal any secrets. It's in their interests to not go completely into debt and become a piraya in the tech industry.