GT Advanced Technologies Inc., announced today that it had commenced voluntary cases under chapter 11 of the Bankruptcy Code in the United States Bankruptcy Court for the District of New Hampshire. GT expects the court will authorize the company to continue to conduct business as usual while it devotes renewed efforts to resolve its current issues and develops a reorganization plan.
GT indicated that as of September 29, 2014 it had approximately $85 million of cash. In addition, it is now seeking debtor-in-possession financing, which, once obtained, would provide the company with an immediate source of additional funds. These funding sources will enable GT to satisfy the customary obligations associated with the daily operation of its business, including the timely payment of employee wages and other obligations.
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GT’s stock last closed on Friday afternoon at $11.05 and opened this morning at $11.06, but as of noon on Monday, October 6, the stock nose dived to a miniscule $1.03, due in part to the announcement of their bankruptcy filing. Other reasons behind GT’s recent shortcomings could be attributed to the lack of sapphire used on Apple’s newest flagship smartphones. For months, rumors swirled around the internet suggesting that the 4.7 and 5.5 inch screens of the iPhone 6 and iPhone 6 Plus would be made entirely out of sapphire glass, but at Apple’s annual iPhone event held on September 9, 2014, the only sapphire used on the new iPhone’s was for the touch-ID sensor and the rear-facing camera.
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As a result of the filing, and as is customary with public companies, NASDAQ may temporarily halt trading in the company’s stock pending the receipt of additional information on the company’s financial condition. The company is cooperating with NASDAQ and will be providing any requested information as promptly as possible.
“We are convinced that the rehabilitative process of chapter 11 is the best way to reorganize, protect our company and provide a path to our future success. We remain committed to our roots in innovation and our diversification strategy. We plan to continue to operate as a technology leader across our core set of businesses,” said Tom Gutierrez, president and chief executive officer of GT.
GT says they will provide additional information regarding their pending chapter 11 filing as soon as it becomes available.
Click here for AZTB’s past coverage of GTAT
