• SEC to Investigate GT Advanced Technologies' Sapphire Business and Securities Trading

    According to GT Advanced Technologies, the US Securities and Exchange Commission (SEC) is conducting an inquiry into the company’s security trading practices and sapphire business. The notice was attached to the company’s quarterly 8-K filing and requested the company preserve and provide documents germane to the investigation.

    As of right now, GTAT’s securities offerings and general sapphire business is at question, dating back to January 1, 2013 before the company announced that it had struck a deal to provide Apple with the material. Apple was set to pay $578 million to build out an advanced sapphire production facility in Mesa, Arizona which GTAT would utilize to help provide product for future devices.

    Instead, GTAT ended up filing for Chapter 11 bankruptcy protection on October 6, just one week before the SEC’s formal probe notice. Shortly after the bankruptcy filing, CEO Tom Gutierrez came under the lime light or selling off $160,000 worth of company stock, a move which he made in early September. It’s unclear whether the action is part of the SEC probe.

    In a recent statement, GTAT COO Daniel Squiller blamed Apple for saying that the contract terms were “unsustainable” and resulted in a $461 million loss for the firm. He supported his claim by citing higher than expected manufacturing costs, technical hang ups and production deficiencies as the main contributors.

    We’ll have to wait and see what comes of the whole ordeal but this doesn’t bode well for GTAT.

    Source: Scribd via AppleInsider
    This article was originally published in forum thread: SEC to Investigate GT Advanced Technologies' Sapphire Business and Securities Trading started by Akshay Masand View original post
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