1. Akshay Masand's Avatar


    More information about the GT Advanced Technologies’ financial situation has been revealed with a recent report claiming that Apple held back a $139 million loan installment from its partner sapphire supplier for what was cited as “unknown reasons.” This move is possibly what lead the firm to file for Chapter 11 protection.

    Speculation points towards GT’s cash on hand which stood at roughly $85 million as of last week, just days before the company filed for bankruptcy protection. The figure stands well below the $125 million threshold that would contractually allow Apple to recoup the approximately $440 million already advanced to GT in an effort to help them ramp up sapphire production at a dedicated factory in Mesa, Arizona.

    Although the reasoning hasn’t been made clear, it’s likely that more details will be brought to light as GT’s bankruptcy process makes progress in the upcoming weeks. Before Apple’s unveiling of the iPhone 6 and iPhone 6 Plus, multiple market analysts were confident that sapphire material sourced from GT Advanced would be used for the handsets’ cover screens. Unfortunately for GTAT, Apple ended up going with Corning’s Gorilla Glass brand instead.

    Furthermore, it was recently discovered that GT Advanced CEO Tom Gutierrez sold $160,000 worth of company stock just prior to Apple’s iPhone 6 and 6 Plus announcement. The move was ironic as the CEO didn’t sell any shares of the company stock last year but ended up selling almost 70,000 units worth this year.

    Despite the bankruptcy and all the news about it, Apple is still said to be using sapphire displays for the Apple Watch which is set to be released in early 2015. We’ll have to wait and see what happens with GT Advanced Technologies in the meantime.

    Source: The Wall Street Journal via AppleInsider

    Twitter: @AkshayMasand
    2014-10-08 06:20 AM
  2. wesker17's Avatar
    My guess is that Apple made a Due diligence and found out that GTA was going south and that giving them a loan would only be a waste of money, instead they just wait until it can be bought and re-organize the company.
    2014-10-08 06:29 AM
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