GT Advanced Technologies announced that, following the U.S. Bankruptcy Court order approving its settlement agreement with Apple, the Company is now pursuing ASF furnace opportunities for sapphire cover glass applications across the broader smartphone market as well as ongoing opportunities in the LED and Industrial markets. Under the agreement, all previous exclusivity restrictions have been lifted and GT Advanced Technologies retains control of its intellectual property as well as ownership of its production, ancillary and inventory assets located in Mesa.
The Company has been provided with a rent-free lease of the Mesa facility through the end of 2015 and a subsequent rent-free lease of a portion of the facility for storage through 2019, subject to early termination by Apple on six-months prior notice, which can be issued no sooner than July 1, 2016. Apple has been provided with a mechanism for recovering its $439 million pre-payment made to GT Advanced Technologies whereby Apple will receive a portion of ASF sales for each furnace that the Company sells.
“We are very pleased that the court has approved our Settlement Agreement with Apple, which we believe is in the best interest of all parties,” said Tom Gutierrez, GT Advanced Technologies’ chief executive officer and president. “We are focused on executing on our business plan which includes marketing and selling our market-leading ASF sapphire growth technology. Based on the demonstrated field performance of the ASF, GT’s technology roadmap and our unmatched sapphire growth expertise, we are confident that GT’s ASF platform offers sapphire manufacturers the most cost competitive, scalable and versatile solution for sapphire growth for several applications including consumer electronics. Since we have re-entered the market, interest in our sapphire technology has continued to grow.” For more information on GTAT, visit BankruptcyData.com.