Apple Trying to Help GT Advanced Meet Milestones, Holds Off on Asking for Loan Repayment

Earlier today, an Apple representative told Reuters that the company was surprised by GT Advanced's decision to file for Chapter 11 bankruptcy on Monday, and The Wall Street Journal has now published some new information on the behind the scenes dealings between the two companies.

According to inside sources, Apple was caught off guard by GT's filing because it had been working with GT to make sure the latter company would be able to pay all of its debts. Apple, aware of GT's weak cash position, also reportedly held off on asking for loan repayments on the $439 million GT has received so far.

gt_advanced_technologies_banner

On Wednesday, Apple called the bankruptcy filing "a surprising decision." A person familiar with the matter said Apple had been working with GT to keep it solvent. In addition, Apple hadn't demanded repayment of loans as it could have, based on GT's weak cash position, people familiar with the matter said.

As part of its loan agreement, Apple was entitled to ask GT Advanced for repayment if its cash holdings fell below $125 million, but Apple has opted not to demand repayment.

In addition to holding off on asking for loan repayment, Apple is also attempting to help GT qualify for the final $139 million payment that Apple has thus far withheld from the company. GT has not yet received the payment because it has reportedly failed to deliver on the technical milestones that it was contractually obligated to meet under the original terms of the $578 million loan that Apple provided for purchasing equipment.

Though Apple was widely rumored to be using GT Advanced sapphire for the iPhone 6 and 6 Plus displays, the company opted to stick with Gorilla Glass, leading to troubles for GT Advanced. Apple provided GT with a facility and a loan to buy equipment, but was not required to purchase GT's sapphire, which has eaten into GT's cash pile.

GT, meanwhile, has reportedly run into manufacturing issues that have impacted yield, explaining why Apple may have passed on sapphire screens for its new iPhones. GT is also subjected to exclusivity provisions limiting what it is able to sell to other companies.

Apple's upcoming Apple Watch will use sapphire on some models, but GT's bankruptcy is unlikely to impact the production of that device as Apple can use sapphire from other sources. The future of sapphire display covers for iPhones is less certain, however, as there are few other sources where Apple can obtain enough high-quality sapphire.

GT Advanced will have its first Chapter 11 bankruptcy court hearing tomorrow, where it is expected to divulge additional information on the reasons behind its bankruptcy filing.

Popular Stories

iPhone 17 Pro 34ths Perspective

iPhone 17 Pro Launching Later This Year With These 10 New Features

Sunday March 23, 2025 10:00 am PDT by
While the iPhone 17 Pro and iPhone 17 Pro Max are not expected to launch until September, there are already plenty of rumors about the devices. Below, we recap key changes rumored for the iPhone 17 Pro models as of March 2025: Aluminum frame: iPhone 17 Pro models are rumored to have an aluminum frame, whereas the iPhone 15 Pro and iPhone 16 Pro models have a titanium frame, and the iPhone ...
macbook pro blue green

When Will Apple Release the M5 MacBook Pro?

Wednesday March 26, 2025 4:53 pm PDT by
Apple regularly refreshes the MacBook Pro models, and a new version that uses M5 series chips is in the works. Apple just finished refreshing most of the Mac lineup with M4 chips, and now it's time for the M5. Rumors suggest that we could see the first M5 MacBook Pro models this fall. Design There have been no rumors of a design update for the M5 MacBook Pro models that are coming this...
Facebook Feature

Facebook's New iPhone App Feature Turns the Clock Back to 2007

Thursday March 27, 2025 1:59 pm PDT by
In the mid-to-late 2000s, Facebook was all about staying connected with friends and family. However, as the social media platform added new features and grew over time, that core experience began to get drowned out. That changes starting now, according to Meta, which today introduced a new feature that will "bring back the joy" of classic Facebook. Specifically, Meta has redesigned the...
iOS 18

iOS 18.4 Expected Next Week - Here Are the Release Notes

Friday March 28, 2025 2:01 pm PDT by
With the second release candidate of iOS 18.4 that Apple seeded out today, the company finally provided us with release notes that give a full rundown on what to expect. There's an Apple Vision Pro app, new Apple Intelligence features for notifications and additional language support, plus an Apple News Food feature for Apple News+ subscribers, and several updates that should improve the...
iOS 18 4 Ambient Music Control Center

How to Use iOS 18.4's New Ambient Music Feature in Control Center

Thursday March 27, 2025 7:45 am PDT by
The upcoming iOS 18.4 update for the iPhone adds an Ambient Music feature to Control Center. Below, we take a closer look at how it works. iOS 18.4 is currently in beta, so the Ambient Music feature is not widely available yet. The update will likely be released to the general public next week. To use the feature on iOS 18.4, open Control Center and tap on the plus sign in the top-left...
Foldable iPhone 2023 Feature 1

'iPhone Fold' to Feature Metallic Glass Hinge That Resists Deformation

Thursday March 27, 2025 4:21 am PDT by
Last week, we covered a report claiming that Apple's book-style foldable iPhone (or "iPhone Fold," as we are provisionally calling it here) will use liquid metal hinges to improve durability and help minimize screen creasing. Today, a Chinese leaker provided more details on the properties of this hinge material that help to clarify why Apple chose it for its first foldable device. According...
Foldable iPhone 2023 Feature Homescreen

Six Things to Know About Apple's Upcoming Foldable iPhone

Friday March 28, 2025 3:54 pm PDT by
We've been hearing rumors about a foldable iPhone for almost a decade now, but it looks like we might finally see the device come to fruition in 2026. We're going to be waiting many more months for the foldable iPhone, but so far we're hearing good things. Apple wants to make it creaseless. It's taken Apple multiple years to design a foldable iPhone that it's satisfied with because Apple ...
Magic Mouse Green

What to Expect From the Magic Mouse 3

Saturday March 29, 2025 10:15 am PDT by
Apple is reportedly working on a new Magic Mouse. Below, we recap what to expect. The two key rumors for the Magic Mouse 3 so far include a relocated charging port, along with a more ergonomic design. It was briefly rumored that the Magic Mouse 3 would also feature voice control, but that was misinterpreted information. Relocated Charging Port While the Magic Mouse switched from...
Apple Lumon Terminal Pro

Apple's Mac Site Features Fictional 'Lumon Terminal Pro'

Wednesday March 26, 2025 12:19 pm PDT by
Apple is going all out with promotions for the popular Severance Apple TV+ show today, and as of right now, you'll find a new "Lumon Terminal Pro" listed on Apple's Mac site. The Lumon Terminal Pro is designed to look similar to the machines that Severance employees like Mark S. and Helly R. use for macrodata refinement. The Terminal features a blue keyboard, a small display with wide...

Top Rated Comments

wikiverse Avatar
137 months ago
I love it when apple plays the good guy role.

Hold up. Apple are the reason GT are in this mess.

Apple: "we will loan you $500m for new equipment to make sapphire for out phones"

GT: "ok"

Apple: "you can't sell the sapphire to anyone else, only us"

GT: "ok, we will give you exclusive access because of the loan."

Apple: "we don't want your sapphire now, and you aren't allowed to sell it to anyone else."

GT: "WTF! How are we supposed to make money?"
Score: 16 Votes (Like | Disagree)
freediverx Avatar
137 months ago
Hold up. Apple are the reason GT are in this mess
Or, it went something like this:


Apple: "We've developed a revolutionary technique for producing sapphire screens and we hear this is right up your wheelhouse. Can you manufacture these for us in the quantities we require?"

GT: "Sure, if you loan us a ton of money for expensive equipment."

Apple: "Ok, if you can guarantee production in sufficient numbers within our required timeframe, we can loan you $500m for new equipment and commit to buying a crap ton of them from you under an exclusive contract. "

GT: "You've got a deal!"

Months later...

GT: "Oops, we've run into manufacturing glitches and won't be able to deliver anywhere near the quantities you need within the expected timeframe and cost. Can you send over the rest of the money you were going to loan us before we file for bankruptcy?"

Apple: :-|
Score: 13 Votes (Like | Disagree)
dBeats Avatar
137 months ago
Hold up. Apple are the reason GT are in this mess.

Apple: "we will loan you $500m for new equipment to make sapphire for out phones"

GT: "ok"

Apple: "you can't sell the sapphire to anyone else, only us"

GT: "ok, we will give you exclusive access because of the loan."

Apple: "we don't want your sapphire now, and you aren't allowed to sell it to anyone else."

GT: "WTF! How are we supposed to make money?"

No. GT's failure to deliver is the reason. Apple wants to use it, but needs a LOT of it. GT said they could do it and then didn't do it. No body grabbed GTs hand and made them sign anything.
Score: 13 Votes (Like | Disagree)
Nozuka Avatar
137 months ago
Hold up. Apple are the reason GT are in this mess.

Apple: "we will loan you $500m for new equipment to make sapphire for out phones"

GT: "ok"

Apple: "you can't sell the sapphire to anyone else, only us"

GT: "ok, we will give you exclusive access because of the loan."

Apple: "we don't want your sapphire now, and you aren't allowed to sell it to anyone else."

GT: "WTF! How are we supposed to make money?"


i guess you didnt read the article.
Score: 12 Votes (Like | Disagree)
mainstreetmark Avatar
137 months ago
Somewhere, there's a man drinking whiskey alone in a dark room, staring blankly at the wall, wondering how it all went wrong.
Score: 12 Votes (Like | Disagree)
yaxomoxay Avatar
137 months ago
You have no idea how much I would love to be in the position to say, "Well, let's give me the $500 millions later..."
Score: 12 Votes (Like | Disagree)