Apple supplier GT Advanced Technologies is saying it would prefer to sue the iPhone company instead of reaching a settlement, but going to court would be too "challenging and expensive" for the company to consider.
GT Advanced told bankruptcy court that its settlement with Apple is an inevitability because litigation wouldn't be a viable solution for the company, according to a report by The Wall Street Journal.
In its filings, GT Advanced Technologies noted that "protracted litigation against one of the largest corporations in the world with over $100 billion of cash would be challenging and expensive."
GT Advanced said to the court that it feels it could win a court case against the Cupertino-based company, citing "actions rooted in the Bankruptcy Code and breach of contract claims." It also accused Apple of engaging in "inequitable conduct" that "resulted in an injury to creditors or conferred an unfair advantage on Apple."
While GT Advanced lawyers and officials say that they have been wronged, they also believe the cost of fighting Apple would in court would be too much to handle.
Apple implied last week that it may not be done with its former supply partner. In a company statement released last week, Apple said it would "continue evaluating GTAT's progress on larger sapphire boule development."
GT Advanced said it plans to exit the sapphire production business altogether. The settlement with Apple would see GT Advanced sell off more than 2,000 more than 2,000 "Advanced Sapphire Furnaces" on the open market to repay $439 million over 4 years, interest-free.
The current deal would all GT Advanced to be released from its exclusive agreement with Apple, while letting the company retain "all production, ancillary and inventory assets located in Mesa."
The deal between GT Advanced and Apple lasted for less than a year in the end. GT Advanced Technologies was not able to meet Apple's demands for sapphire production, and the company filed for bankruptcy a few weeks ago.
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