Apple Objects to GT Advanced’s Financing Plan Following Mesa Fire

Apple is objecting to GT Advanced Technologies’ financing plan over concerns that it would undermine its existing settlement reached with the bankrupt sapphire crystal supplier last year, reports Re/code. GT Advanced reached a settlement with Apple in October 2014 after failing to produce sapphire crystal of the quality desired by the Cupertino-based company for potential use in future products.

GT Advanced is attempting to restructure by raising $95 million through a loan agreement under the supervision of the U.S. Bankruptcy Court for New Hampshire, but the financing plan is contingent on the company receiving enough insurance money to repair any damage to sapphire furnaces following a fire at its former Mesa, Arizona facility a few months ago.

GT Advanced’s inspection equipment damaged in Mesa facility fire last May
Apple argues that GT Advanced already determined damage at the facility to be minimal, adding that the terms of the loan agreement give lenders too much leverage to foreclose on the sapphire furnaces that GT Advanced is supposed to sell in order to repay Apple. A group of GT Advanced shareholders have also reportedly questioned why the company needs to raise money nine months into bankruptcy.

GT Advanced filed for bankruptcy last October after it became clear the company was spending over one million dollars per day to run its operations, despite being unable to produce sapphire acceptably by Apple’s standards. The company began winding down its sapphire production and decommissioning the furnaces to prepare them for storage and resale through the end of last year.



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Apple and GT Advanced Technologies amicably part ways

Apple is in the market for a new sapphire supplier. GT Advanced Technologies and Apple have reached an agreement that will see the two companies amicably parting ways, after the sapphire supplier filed for chapter 11 bankruptcy earlier this month.…Read more ›



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Apple Sapphire Supplier GT Advanced Technologies Removed From NASDAQ Exchange [iOS Blog]

Apple sapphire supplier GT Advanced Technologies’ woes continue today with the announcement that it will not appeal the suspension of its stock on the NASDAQ stock exchange. As part of this decision, the company’s stock is no longer being traded on the NASDAQ stock market effective today, October 16. This removal was expected and is the result of the company’s recent Chapter 11 bankruptcy.

GT Advanced Technologies Inc. today announced that it will not pursue an appeal of the determination by The NASDAQ Stock Market LLC („NASDAQ“) to suspend trading in the Company’s common stock based on the Company’s voluntary petition for reorganization relief under Chapter 11 of the United States Bankruptcy Code. The Company has been informed that NASDAQ will suspend trading in the Company’s common stock effective at the opening of the market on October 16, 2014.

GT’s stock plummeted 90 percent following its bankruptcy announcement earlier this month, and has continued to fall since then, closing at just 44 cents per share yesterday. The stock will continue to trade under the symbol GTATQ on the OTC Pink marketplace.

As part of the original deal, Apple made three loan payments to GT totaling $440 million and said it was working with GT to help overcome technical challenges to qualify for the fourth and final prepayment loan of $139 million. Apple also appeared set to delay scheduled repayments on the debt. But under the weight of difficulties that began at least as early as February, GT found itself unable to carry on its business operations and filed for bankruptcy with plans to shut down its sapphire production facilities.




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Sapphire supplier COO made $1.2 million offloading shares before bankruptcy

The sudden collapse of GT Advanced Technologies surprised everyone last week, including Apple, but according to new info obtained by the Wall Street Journal, key executives at GTAT knew its sapphire production deal was in trouble as early as February…Read more ›



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Apple slaps suppliers with a $50m fine for leaking secrets

Apple’s bankrupt sapphire supplier GT Advanced Technologies might have stayed quiet about the reasons for the bankruptcy, but a few details are nonetheless starting to emerge. Two of the most intriguing tidbits concerning the case regard the cost of sapphire…Read more ›



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Bankrupt Apple supplier wants to close sapphire plant after less than 1 year

GT Advanced Technologies is apparently getting out of the sapphire production game, after filing for Chapter 11 bankruptcy protection at the start of this week. As reported by Re/code and the Wall Street Journal, the beleaguered company is asking the…Read more ›



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Apple’s sapphire supplier wants to keep bankruptcy details under wraps

How GT Advanced Technologies could have filed for bankruptcy, despite Apple’s best efforts to prop it up, is still something of a mystery — and it’ll stay like that if the company gets its way. According to a Reuters report,…Read more ›



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Apple Surprised by GT’s Bankruptcy Filing, Considering Next Steps

In the company’s first public statement regarding the bankruptcy filing by its sapphire partner GT Advanced Technologies earlier this week, an Apple spokesman tells Reuters the company was surprised by the filing and that it is now figuring out its next steps.

„We are focussed on preserving jobs in Arizona following GT’s surprising decision and we will continue to work with state and local officials as we consider our next steps,“ spokesman Chris Gaither said.

GT reportedly fell into difficulty when Apple withheld a final $139 million prepayment loan, part of a roughly $580 million package intended to help GT start up operations at the Mesa, Arizona sapphire production plant owned by Apple.

With Apple opting not to use sapphire for the display on the iPhone 6 and under no commitment to purchase sapphire from GT, the sapphire producer quickly started running out of cash. And with repayment on the Apple loan set to start in January, if not sooner, GT found itself needing to enter bankruptcy protection while reorganizing its business.

While the Apple Watch will use sapphire on some models, KGI Securities analyst Ming-Chi Kuo claims GT’s bankruptcy should have no impact on that product as Apple can source sapphire for that product from multiple sources.

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Apple withheld $139 million payment to sapphire supplier

New details have emerged about the surprise bankruptcy protection filing of GT Advanced Technologies, a.k.a. the company that was supplying Apple with its sapphire. As per the Wall Street Journal, Apple agreed to lend GT Advanced a total of $578…Read more ›



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Apple sapphire supplier in financial crisis

GT Advanced Technologies, a sapphire supplier that works closely with Apple, today confirmed that it has filed for Chapter 11 bankruptcy court protection. Its share price has been falling since it was revealed that Apple opted for Gorilla Glass rather than sapphire…Read more ›



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