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Apple's bankrupt sapphire supplier petitions to pay US$3.7 million in bonuses

Gregg Keizer | Jan. 5, 2015
Argues that senior management and core group of employees need cash to stick around.

It would not be surprising if creditors are leery of paying GT's executives more money from the company's dwindling coffers. They might also bring up the fact that five of the company's senior executives sold more than $10 million worth of their stock grants in the months leading up to GT's implosion. The U.S. Securities and Exchange Commission (SEC) is currently investigating those trades.

Last year, GT and Apple struck a deal under which Apple would provide a $578 million interest-free loan so that GT could purchase equipment to produce large quantities of sapphire.

The deal triggered speculation that Apple would use the sapphire as touch display covers for its iPhone, particularly the then-anticipated larger-screen model. While that didn't come to pass -- the iPhone 6 and 6 Plus use Corning's Gorilla Glass 3 instead -- the mid- and top-tier Apple Watch lines are to use sapphire as their face-covering crystals.

But this fall, GT collapsed because of cost overruns and production issues at the Arizona sapphire factory. In earlier court filings, GT blamed Apple's onerous contract and meddling for its downfall.


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