Former Apple supplier, GT Advanced Technologies, is asking a bankruptcy court for permission to give “executive bonuses” of up to $2 million to help motivate and retain “key” employees, according to AppleInsider (www.appleinsider.com).
In October GT Advanced Tech, Apple’s partner in a sapphire production facility in Arizona, together with certain of its direct and indirect subsidiaries (collectively, GT), commenced voluntary cases under chapter 11 of the Bankruptcy Code in the United States Bankruptcy Court for the District of New Hampshire.
That same month it was announced that GT Advanced and Apple had reached a settlement agreement under which GT will wind down its sapphire materials production in the company’s Mesa, AZ and Salem, MA locations. The company indicated that it will exit from the market as a producer of sapphire materials and will refocus its business as an equipment supplier, manufacturing and developing sapphire growth systems and processes.
Under the terms of the settlement agreement, which is subject to approval by the Bankruptcy Court, GT will be released from all exclusivity obligations under its various agreements with Apple. GT will retain ownership of all production, ancillary and inventory assets located in Mesa, and Apple is provided with a mechanism for recovering its US$439 million pre-payment made to GT over a period of up to four years without interest, solely from a portion of the proceeds from ASF sales.