GT Advanced Technologies Inc (OTCMKTS:GTATQ) investors could take a sigh of relief after the bankruptcy court approved a settlement adding at least $50 million to the previous settlement deal. The sapphire maker is decoupled from the iPhone maker, Apple Inc. (NASDAQ:AAPL), through this settlement and the company would retrace its business back to sapphire production.
The sapphire manufacturer company would be able to harness more short-term cash for overcoming current financial turmoil and resume sapphire production. Under the new deal, GT Advanced Technologies Inc (OTCMKTS:GTATQ) would be able to sell up to 2,000 sapphire furnaces currently stored at the Mesa, Arizona plant. The sale of every single furnace is likely to fetch up to $500,000 and Apple Inc (NASDAQ:AAPL) would receive $169,000 for the first 500 sold furnaces against the initial agreement of $200,000.
In addition to the extra money generated from the furnace sale, GT Advanced Technologies Inc (OTCMKTS:GTATQ) would be able to use the Mesa facility for another 3 months free of cost. The attorney representing investors holding GT notes worth $230 million, Michael Stamer of Akin Gump Strauss Hauer Feld, said that these terms would boost the overall settlement by $50 million and hence, the group does not have any more objections about the same.
According to Apple Inc. (NASDAQ:AAPL) lawyers, the company has surrendered multiple claims against GT Advanced Technologies Inc (OTCMKTS:GTATQ) just to close the case as soon as possible. The new deal would give GT as many as four years to sell the furnaces and repay the debt of iPhone maker. The sapphire maker is pinning its hopes over the ruling so that it can return back to its business and according to the company, it spent nearly $900 million to proceed forward with the production of sapphire as per Apple’s demands.
This article has been written by Prakash Pandey.