GT Advanced Technologies, sapphire display maker and one of Apple’s suppliers filed for voluntary bankruptcy after shares fell by 90 percent on Tuesday. The manufacturer dismissed claims of shutting down its business.
The subsidiaries of the company also filed for bankruptcy with assets and liabilities valued at $1 billion, which includes $85 million in cash the Chapter 11 of the Bankruptcy Code Petition. The worth of the US firm fell from $1.5 billion to $175 million. Tom Gutierrez, president and CEO of GT Advanced Technologies stated that the company would continue its sound underlying business.
“Today’s filing does not mean we are going out of business, rather it provides us with the opportunity to execute our business plan on stronger footing,” said Gutierrez.
The company hopes that the rehabilitative process of Chapter 11 is the best way to reorganize, protect the company and provide a path for the future success. Gutierezz added that the company would remain committed to innovation and diversification strategy. The company would seek debtor-in-financing, which would provide immediate funds for the company. It is not clear if Apple’s move to not include sapphire displays led to the filing of bankruptcy by the company which even faced manufacturing issues.
GT Technologies had signed a deal with Apple in November for supplying sapphire displays and also led to rumors that the displays would be used in the latest iPhone 6 which features a reinforced glass produced by ion process. Sapphire displays were chosen as it is the second-most strongest material on earth and resistant to scratches. However the brittle crystalline structure can crack when dropped.
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