Oct 23, 2014 7:36 AM
Merrimack, NH-based GT Advanced Technologies, Apple reach settlement
MERRIMACK - Under a settlement with Apple, GT Advanced Technologies will end sapphire screen production at two of its plants.
GTAT will stop making the materials Mesa, Ariz., and Salem, Mass. It also has said it will exit the sapphire materials production market and will focus on supplying, manufacturing and developing instead.
Under the terms of the settlement, which is subject to approval by the bankruptcy court, GTAT will be released from its contracts with Apple and will retain ownership of production and assets in Mesa.
GTAT also plans to repay Apple $439 million over a period of up to four years.
"We are pleased with the settlement that we have negotiated with Apple," said Tom Gutierrez, president and chief executive officer. "We have been working diligently to develop a restructuring plan that will allow us to emerge from Chapter 11 as quickly as possible and with the operating flexibility and resources to position GT for long-term success."
Earlier this week GTAT began shutting down the Mesa facility and laid off nearly 650 employees at the site.
GTAT also has said there will be layoffs in Merrimack, and Salem, Mass. and in Asia.
GT will seek the court's approval Monday. The court is scheduled to take up the settlement on Nov. 25.