GT Advanced plans to file a motion seeking authorization to wind down operations at its sapphire manufacturing plants, and has been ordered by bankruptcy judge Henry Boroff to immediately make the submission. A hearing on the motion is set for 2PM ET on Oct. 15. GT Advanced (NASDAQ:GTAT) was supposed to supply material for Apple iPhone screens, but that hasn't quite worked out.

Apple Deal

GT Advanced in November announced a multiyear agreement to supply Apple with sapphire. The company lined up $578 million in prepayment loans from Apple to pay for the equipment to make the material, which wasn’t included in the latest version of the iPhone. The final payment of about $139 million was expected this month.

GT Advanced will also seek permission to reject certain contracts and unexpired leases in connection with the wind down as well as approval to pay an employee incentive plan, court papers show.

Although Boroff said the motions must be presented unredacted, he did give permission to withhold some information from the public.

GT Advanced must provide “all such information as shall be reasonably requested to any party in interest and the United States Trustee and, in the debtor’s sole discretion to the public press, except that in the event that any such information relates to the details of the debtors’ business relationship with Apple,” Boroff said in court papers.