The management of GTAT was either in a serious state of denial or perpetuating a deliberate fraud. It will be interesting to see how this one unwinds.
While I agree that "it will be interesting to see how this one unwinds," there is a third possibility, hinted at in the last paragraph below--and that is that Apple kept "changing the specifications" or otherwise made GTAT's job impossible or close enough to it. Everyone seems to be blaming GTAT, and perhaps they are right to do so, but I don't see enough evidence to come down on one side or the other at this point.
GT bankruptcy hearing delayed; Apple grilled over secrecy requests • 8:54 PM
Eric Jhonsa, SA News Editor
- A hearing over GT Advanced's (NASDAQ: GTAT) request to shut down its sapphire manufacturing ops and keep many details about its Chap. 11 filing sealed that was originally set for today has been pushed back to Oct. 21, the day after Apple's FQ4 report.
- GT, Apple, and a committee of creditors agreed to the push-out. Also delayed: A ruling on Apple's objections to GT's attempt to free itself of certain contracts and leases.
- Nonetheless, the day wasn't without fresh drama. Bankruptcy judge Henry Boroff grilled Apple over its extensive secrecy requests, questioning how much proprietary info was actually included in many of the docs it wants kept private. "I've got a foot-high stack of documents, and it can't be that it all must be sealed."
- Boroff also provided a colorful analogy for the dispute between Apple and its would-be supplier. "I’m seeing what looks incredibly like a construction suit, where a homeowner says to the contractor, 'It didn't come out the way I wanted to,' and the contractor says, 'Well, it would have come out that way if you didn't continue to change the specifications.'"
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