GT Advanced Technologies, an Apple sapphire display partner, have come to a financial agreement in the wake of GT's bankruptcy, according to Fortune.
The deal allows GT to sell more than 2,000 furnaces used to grow sapphire crystals. Proceeds of those sales, if any, will be used to pay the company's debt to Apple—currently valued at $439 million, Fortune said. All of Apple's other claims against GT will be waived.
Neither Apple nor GT Advanced immediately responded to PCMag's request for comment. But GT's attorney, Luc Despins, told Fortune that the deal is "an amicable parting of the ways" and "extremely good news for the estate," saving "millions of dollars."
Apple last year announced plans for a new facility in Arizona, which would run in partnership with GT Advanced. Cupertino agreed to provide GT with a $578 million pre-payment, to be paid back over five years, starting in 2015.
The deal sparked rumors that the next-generation iPhones would sport a sapphire display; the iPhone 6 lineup, however, launched in September with Corning Gorilla Glass—likely due to the expense and labor required to produce sapphire screens. Apple currently uses sapphire for the surface of its Touch ID button, while the upcoming Apple Watch will also be protected by sapphire crystal.
Shortly after the iPhone 6 launch, GT filed for Chapter 11 bankruptcy and requested debtor-in-possession financing, which would allow it to stay afloat (and pay its employees).
The move "provides us with the opportunity to continue to execute our business plan on a stronger footing, maintaining operations of our diversified business, and improve our balance sheet," GT said at the time.
Later, reports said GT Advanced would ramp down production of its scratch-resistant sapphire material.
Apple, however, reportedly had concerns that bankruptcy proceedings would reveal confidential information about the company's plans, prompting some back and forth in the courtroom, resulting in this week's deal.
For more, see How Apple Could Afford an iPhone With a Sapphire Display.