GT Advanced Technologies (GTAT), the sapphire screen supplier for tech giant Apple’s mobile devices, on Friday approached a bankruptcy court pleading to free it from all the contracts with the Cupertino-based company, calling it “oppressive and burdensome”.
“GTAT believes that it has many claims against Apple arising out of its business relationship. The agreements imposed oppressive and burdensome terms and obligations on GTAT,” the lawyers for the US-based screen manufacturer said in the paperwork filed in the US Bankruptcy Court.
GTAT pleaded before the court if the firm could unwind some of its synthetic sapphire manufacturing plants in two states (Massachusetts and Arizona) it would be able to restrict the “ongoing cash burn” which is threatening to eat its liquidity.
Presenting its argument in the court papers, the GTAT said that the agreements are benefitting Apple.
The company also urged the court to change its business model from manufacturing sapphire equipments to building synthetic materials themselves.
GTAT told the court that a scrupulous evaluation had resulted in making the company understand that for safeguarding its assets, it requires to unwind its sapphire facilities in both the states.
While Apple was unavailable for immediate comment on the issue, some media reports quoted the tech company as saying, “Apple was “surprised” by GTAT’s resolution filing for bankruptcy.”
Insiders say the ceasing of the operations of sapphire screen by the manufacturer will result into loss of 890 employees.
The sapphire touch screens, used as a better and durable synthetic replacement for the glass, are currently used on a variety of Apple products including the latest versions of iPhones and latest entrant the Apple Watch.

