UNITED STATES BANKRUPTCY COURT DISTRICT OF NEW HAMPSHIRE In re: GT advanced technologies, inc., et al. "Dow jones and company,. Respectfully submits this response to the Debtors' request (DN 92) to file an unredacted version of the SUPPLEMENTAL. Declaration under seal, or in the alternative, to file the full document in the public docket.
UNITED STATES BANKRUPTCY COURT DISTRICT OF NEW HAMPSHIRE In re: GT advanced technologies, inc., et al. "Dow jones and company,. Respectfully submits this response to the Debtors' request (DN 92) to file an unredacted version of the SUPPLEMENTAL. Declaration under seal, or in the alternative, to file the full document in the public docket.
UNITED STATES BANKRUPTCY COURT DISTRICT OF NEW HAMPSHIRE In re: GT advanced technologies, inc., et al. "Dow jones and company,. Respectfully submits this response to the Debtors' request (DN 92) to file an unredacted version of the SUPPLEMENTAL. Declaration under seal, or in the alternative, to file the full document in the public docket.
In re: GT Advanced Technologies, Inc., et al. Debtors
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Chapter 11 Case No. 14-11916-HJB Jointly Administered
RESPONSE OF DOW JONES & COMPANY, INC. TO RELIEF SOUGHT BY DEBTORS IN THEIR EMERGENCY MOTION FOR ENTRY OF ORDER, PURSUANT TO BANKRUPTCY CODE SECTION 107(B) AND BANKRUPTCY RULE 9018, AUTHORIZING FILING UNDER SEAL OF UNREDACTED VERSIONS OF SUPPLEMENTAL FIRST DAY DECLARATION AND OTHER DOCUMENTS Dow Jones & Company, Inc. (Dow Jones), publisher of The Wall Street Journal, Dow Jones Newswires, and a variety of other news and information publications, respectfully submits this response to the Debtors request (DN 92) to file an unredacted version of the Supplemental First Day Declaration of Daniel W. Squiller (the Supplemental Declaration) under seal, or in the alternative, to file the full document in the public docket. Preliminary Statement 1. Despite its title, the Debtors motion is best described as a motion for permission to file an unredacted version of the Supplemental Declaration. Although the Debtors do mention filing under seal, they do so only begrudgingly and present no argument in favor of that outcome. To the contrary, they argue forcefully that the materials addressed in the Supplemental Declaration do not meet the requirements of 11 U.S.C. 107(b)(1), and that in the interest of their creditors, equity holders, and other stakeholders, as well as to ensure an open, transparent, and fair process in these chapter 11 cases, unredacted versions of the Supplemental Declaration should be filed. DN 92 at 5. Case: 14-11916-HJB Doc #: 119-1 Filed: 10/14/14 Desc: Exhibit Proposed Response to Debtors Motions 55 and 92 to Seal Records Page 1 of 8
2 2. The United States Trustee agrees, stating that [s]hielding this information from public view would be wholly inappropriate given the importance of transparency to the bankruptcy process; the statutory right of the public to have access to papers filed in a bankruptcy case; and the inherent due process rights of all creditors and parties in interest to notice and adequate disclosure. DN 111, 2. 3. Dow Jones joins the Debtors and the United States Trustee in urging the Court to permit the Supplemental Declaration to be publicly filed and discussed in open court. Dow Jones moves separately to underscore the importance of this information to the public and the press, and to emphasize that in addition to the statutory provisions of Section 107(b), there are also important Constitutional issues at stake. 4. The Courts denial of public access to the full Supplemental Declaration, other filings, and hearings in this case is only warranted where it has determined itself that a party seeking secrecy has satisfied the proper legal standards for sealing and the Court has explained its reasons with on the record findings that such secrecy is required. Furthermore, to the extent the Court decides to deny full public access, Dow Jones urges the Court that targeted redaction of limited information is far more in keeping with the letter and spirit of Section 107(b)(1) than wholesale removal of a document from the public record, and is the constitutionally required narrowly-tailored, less restrictive alternative. 5. Finally, Dow Jones respectfully requests that the Court make any transcripts and recordings of the closed hearings held on October 9, 2014 available to the public and the press either in full, or with limited redactions where a party has proved that an exception to the rights of public access is warranted. Background Facts 6. In connection with the commencement of these cases, Debtors filed a Case: 14-11916-HJB Doc #: 119-1 Filed: 10/14/14 Desc: Exhibit Proposed Response to Debtors Motions 55 and 92 to Seal Records Page 2 of 8
3 motion (DN 55) seeking permission to file under seal a second and more detailed motion to seal a series of documents, including, principally, a Supplemental First Day Declaration of Daniel W. Squiller. Debtors also requested that any hearing on the motion, as well as consideration of the materials it submitted in support, be addressed in camera. Id. 7. During an adjournment in the initial hearings on October 9, the courtroom was cleared to address this motion. Only the United States Trustee and counsel for Apple and the Debtors were permitted to participate. On information and belief, this closed hearing continued for at least twenty-five minutes. 8. In an Order issued later in the day on Thursday the 9 th , the Court allowed the Supplemental Declaration to be filed under seal, absent further court orders, but directed that the motion to seal itself (and several other motions encompassed by the request) would not be maintained under seal. DN 86. 9. The Court also directed that Debtors could make this information available to any party in interest, including to the public press, subject to the proviso that any such information relat[ing] to the details of the Debtors business relationship with Apple must be first disclosed to Apple, which would have three days to file a request with the Court to prohibit such disclosure. DN 86. 10. The circumstances of Debtors financial struggles are of direct and considerable interest to Dow Jones readership, and Dow Jones has covered the matter closely. E.g., Daisuke Wakabayashi, Apple Sapphire Partner GT Advanced Files for Bankruptcy Protection, The Wall Street Journal (Oct. 6, 2014), at http://online.wsj.com/articles/gt-advanced-technologies-files-for-bankruptcy- 1412607074; Daisuke Wakabayashi, Joseph Checkler, Apple, Others Surprised by Sapphire Partners Bankruptcy Filing, The Wall Street Journal (Oct. 8, 2014), at http://online.wsj.com/articles/apple-surprised-by-partners-bankruptcy-filing- 1412782625; Joseph Checkler, GT Advanced to Close Arizona, Massachusetts Case: 14-11916-HJB Doc #: 119-1 Filed: 10/14/14 Desc: Exhibit Proposed Response to Debtors Motions 55 and 92 to Seal Records Page 3 of 8
4 Sapphire Plants, The Wall Street Journal (Oct. 10, 2014), at http://online.wsj.com/articles/gt-advanced-to-close-arizona-massachusetts-sapphire- plants-1412960452. But Dow Jones cannot present an accurate and comprehensive picture of these cases to the public in the absence of the Supplemental Declaration. As the United States Trustee notes, the initial Squiller Declaration (DN 14) provide[s] little insight to the conditions giving rise to the Debtors bankruptcy filing. DN 111, 5. It is only in the Supplemental Declaration that the true nature of the Debtors circumstances are disclosed. 11. More than the Supplemental Declaration is at stake. Dow Jones is concerned that information submitted as the cases progress that touches in any way on Apple, or falls within the expansive terms of the confidentiality agreement (DN 92-3), will be subject to seal, redaction, or other restrictive terms. Argument
I. The Supplemental Declaration Does not Qualify for the Limited Exceptions to the Right of Public Access Described in 11 U.S.C. 107(b).
12. 11 U.S.C. 107(b)(1) embodies and codifies the broad right of public access, subject only to limited exceptions to all papers filed in a bankruptcy case. In re Gitto Global Corp., 422 F.3d. 1, 7 (1 st Cir. 2005). Only the first exception -- to protect an entity with respect to a trade secret or confidential research, development, or commercial information is implicated in this case. DN 92, n. 22. And as Debtors correctly, note, it is narrowly construed. Id. 27. 13. Dow Jones has no first-hand knowledge of what the Supplemental Declaration contains. But the Debtors and the United States Trustee clearly do, and they agree that section 107(b)(1) of the Bankruptcy Code requires full disclosure of the materials in the Supplemental Declaration. DN 92, 31. Dow Jones sees no reason to doubt these assessments. No party has made any showing to satisfy the Case: 14-11916-HJB Doc #: 119-1 Filed: 10/14/14 Desc: Exhibit Proposed Response to Debtors Motions 55 and 92 to Seal Records Page 4 of 8
5 burden of proving that information in the record is subject to an exception to the rule mandating that bankruptcy court documents and hearings are public.
II. Preventing Public Access to the Supplemental Declaration Would Also Run Afoul of Critical Constitutional Principles. 14. The Debtors and the United States Trustee both focus on Section 107(b)(1) and Rule 9018, which are the principle authorities governing public access in this Court. Although common law access rights have been supplanted by section 107(b)(1) in bankruptcy cases see In re Gitto, 422 F.3d at 8 the First Amendment right of access to civil proceedings very much applies. In re Alterra Healthcare Corp., 353 B.R. 66, 73 (Bankr. D. Del. 2006) (internal citations omitted). 15. A First Amendment right of access applies if the place and process have historically been open to the press and general public and public access plays a significant positive role in the functioning of the particular process in question. PressEnter. Co. v. Superior Court, 478 U.S. 1, 8 (1986). That is plainly true of bankruptcy proceedings. Indeed, the First Amendment right of access is of special importance in the bankruptcy arena, as unrestricted access to judicial records fosters confidence among creditors regarding the fairness of the bankruptcy system. Gitto, 422 F.3d at 7. 16. [T] o limit the publics access to civil trials there must be a showing that the denial serves an important governmental interest and that there is no less restrictive way to serve that governmental interest. Publicker Indus., Inc. v. Cohen, 733 F.2d 1059, 1070 (3d Cir.1984) (citing Globe Newspaper Co. v. Superior Court, 457 U.S. 596, 60607(1982)). 17. For the reasons explained, Debtors have made no such showing in this case. Where those seeking sealing and closing have failed to meet even the statutory requirements, they have necessarily failed to show the kind of compelling interest that would permit a restriction on public access under the First Amendment. Case: 14-11916-HJB Doc #: 119-1 Filed: 10/14/14 Desc: Exhibit Proposed Response to Debtors Motions 55 and 92 to Seal Records Page 5 of 8
6 III. In the Alternative to Full Disclosure of the Supplemental Declaration, the Least Restrictive Means of Balancing the Publics Right of Access with the Limitations Described in Section 107(b)(1) is to Closely Redact the Document Not to Seal it Entirely. 18. Debtors present the Court with a binary choice either permit public access to the full, unredacted Supplemental Declaration or seal the entire document. Dow Jones believes that the Court should choose the former option as the legal standards for sealing have not been satisfied. But to the extent the Court finds that certain limited information requires protection, Dow Jones believes that a third option is required. Instead of sealing the entire document, the Court should redact only those portions of the Supplement Declaration that satisfy the exacting standards of Section 107(b)(1). A version of the document so redacted should then be released for public access. 19. When protection is required under 107, the Court has discretion in deciding how to protect commercial information as 107 does not mandate sealing only protection. In re Anthracite Capital, Inc., 492 B.R. 162, 180 (Bankr. S.D.N.Y. 2013) (emphasis in original) (internal citations omitted). Not surprisingly, redacting documents to remove only protectable information is preferable to wholesale sealing. The policy favoring public access supports making public as much information as possible while still preserving confidentiality of protectable information. In re Borders Group, Inc., 462 B.R. 42, 47 (Bankr. S.D.N.Y. 2011) (citing Nixon v. Warner Commcns, Inc., 435 U.S. 589, 59798 (1978)). 20. Redaction also satisfies the First Amendments preference for the least restrictive means of serving the narrow interests of Section 107(b)(1). Dow Jones respectfully requests that the Court consider this option if it determines that, contrary even to the arguments of the Debtors and the United States Trustee, the entire Supplemental Declaration cannot be released from seal.
Case: 14-11916-HJB Doc #: 119-1 Filed: 10/14/14 Desc: Exhibit Proposed Response to Debtors Motions 55 and 92 to Seal Records Page 6 of 8
7 IV. The Court Should Also Release Any Transcripts and Recordings Made of the Closed Hearing Held on October 9, 2014. 21. Dow Jones, together with everyone but the Debtors, Apple, and the United States Trustee, were prevented from hearing the arguments made during the closed hearing on October 9, 2014. To ensure transparency and to allow the public the full breadth of its access to bankruptcy proceedings, Dow Jones respectfully asks that any transcript and recording made of this hearing be released. 22. Because the public and the press (and creditors other than Apple) were not free to attend, observe, and take notes of the October 9 hearing, we respectfully request that the court order the release of recordings and a transcript of what transpired. (Dow Jones notes, however, that a transcript is not an adequate substitute for public access because some information, concerning demeanor, non- verbal responses, and the like, is necessarily lost in the translation of a live proceeding to a cold transcript. United States v. Antar, 38 F.3d 1348, 1360 n.13 (3d Cir. 1994). But where the court determinates that concurrent access must be denied, the provision of a transcript may well be the best available substitute. ABC, Inc. v. Stewart, 360 F.3d 90, 100 (2d Cir. 2004).) 23. Here too, to the extent that certain statements made during the hearing may be found by the Court to warrant secrecy within the limited scope of Section 107(b)(1) and the First Amendment right of access, those statements can be redacted. Respectfully submitted,
Dow Jones & Company, Inc. By Its Attorneys: ORR & RENO, P.A.
Date: October 14, 2014 By: /s/ Jeffrey C. Spear Jeffrey C. Spear, Bar No. 14938 Lisa Snow Wade. Bar No. 5595 P.O. Box 3550 Concord, NH 03302 Case: 14-11916-HJB Doc #: 119-1 Filed: 10/14/14 Desc: Exhibit Proposed Response to Debtors Motions 55 and 92 to Seal Records Page 7 of 8
8 603-223-9156 jcs@orr-reno.com lsw@orr-reno.com
CERTIFICATE OF SERVICE
I hereby certify that a copy of the foregoing will be sent this day to all counsel of record, and all others who have properly filed a notice of appearance and request for documents, via the Courts Electronic Case Filing system.
/s/ Jeffrey C. Spear Jeffrey C. Spear
1213371 Case: 14-11916-HJB Doc #: 119-1 Filed: 10/14/14 Desc: Exhibit Proposed Response to Debtors Motions 55 and 92 to Seal Records Page 8 of 8