GT Advanced Technologies Inc. (NASDAQ:GTAT) said that because of the terms of a confidentiality agreement, they are obliged to conceal the reason for filing a bankruptcy report. The case was filed by GT Advanced Technologies Inc. (NASDAQ:GTAT) on Monday. During the first hearing of the case, the company lawyer declared that according to a confidentiality agreement, the company could not discuss their Chapter 11 game plan strategies.

GT Advanced Technologies Inc. (NASDAQ:GTAT) is a supplier for Apple Inc. (NASDAQ:AAPL). and have struck a lucrative deal with Apple Inc. (NASDAQ:AAPL). According to the deal, GT Advanced Technologies Inc. (NASDAQ:GTAT) will set up a factory in Arizona exclusively to make sapphire glass for Apple Inc. (NASDAQ:AAPL). The glass will be scratch resistant. Apple Inc. (NASDAQ:AAPL) is known to guard its secrets regarding its product therefore not much is known about it. Naturally, the company places very strict confidentiality restrictions on its suppliers as well.

The case is very unusual in itself. First off, the news of GT Advanced Technologies Inc. (NASDAQ:GTAT)’s bankruptcy caught everyone by surprise, even Apple Inc. (NASDAQ:AAPL). Secondly, the company is refusing to disclose reasons for this bankruptcy.

Paul Hastings’ Luc Despins told the judge of bankruptcy case, Henry Boroff, that the company is restricted by an agreement to keep their reason for bankruptcy and their plan for coming out of this situation a secret. However, he did not specify which agreement. Despins also took note of the fact that the company’s stock went down by 90% within the first three trading days of this week. He conveyed to all the shareholders that the company is suffering greatly because of the losses and is struggling rigorously to regain its prior position.

This lack of disclosure has met with criticism of course. A lawyer from the U.S. Trustee office said that the record given by the company does not suffice in helping the court find what they need to.

Apple Inc. (NASDAQ:AAPL) meanwhile revealed their surprise at the filing of this case and said that they are working with the officials in Arizona to plan their next move. Because GT Advanced Technologies Inc. (NASDAQ:GTAT) failed to provide much information regarding its bankruptcy, the stock fell over 90% on Monday. On Thursday, the company also requested the court to keep their request for keeping some documents relevant to a third party sealed. This is important if the company is to prevent itself from paying damages due to any confidentiality agreements. However, the company still did not reveal the third party to which the documents were related and the agreement under which it was acting.

While filing the case, GT Advanced Technologies Inc. (NASDAQ:GTAT) requested that all hearings must be kept from the public. The company is fully aware of the fact that the case is very unexpected and unusual, but they have to avoid paying a royalty in case any violation of confidentiality agreement occurs. Seeing how the company is suffering in terms of its finances, this is a very important request.

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