Apple's sapphire provider GT Superior Applied sciences information for chapter
GT Superior Applied sciences, the corporate Apple tapped to fabricate giant portions of sapphire, filed for Chapter eleven chapter earlier at the moment.
Over the previous yr, Apple helped GT Superior orchestrate the construct-out of a model new sapphire manufacturing facility in Arizona, even offering GT Superior with a number of substantive loans to assist them purchase the requisite equipment. Additional, regulatory filings all year long indicated that GT Superior had plans to fabricate large portions of sapphire, main some to take a position that the iPhone 6 would function a sapphire coated show. The iPhone 6 unveiling, nevertheless, got here and went with nary a point out of sapphire. Whereas the Watch will use sapphire crystals in its two greater-finish fashions, that product is not due till 2015.
A press launch on the matter reads:
GT Superior Applied sciences Inc., introduced at the moment that it had, along with sure of its direct and oblique subsidiaries (collectively, GT), commenced voluntary instances beneath chapter eleven of the Chapter Code in the USA Chapter Courtroom for the District of New Hampshire. GT expects the courtroom will authorize the corporate to proceed to conduct enterprise as ordinary whereas it devotes renewed efforts to resolve its present points and develops a reorganization plan.
GT indicated that as of September 29, 2014 it had roughly $eighty five million of money. As well as, it’s now looking for debtor-in-possession financing, which, as soon as obtained, would offer the corporate with a direct supply of further funds. These funding sources will allow GT to fulfill the customary obligations related to the day by day operation of its enterprise, together with the well timed cost of worker wages and different obligations.
Because of the submitting, and as is customary with public corporations, NASDAQ might briefly halt buying and selling within the firm’s inventory pending the receipt of further info on the corporate’s monetary situation. The corporate is cooperating with NASDAQ and might be offering any requested info as promptly as attainable.
The iPhone 6 nonetheless employs sapphire for the house button and the digital camera lens, however that is apparently not sufficient to offer GT Superior the amount of money they should run their enterprise.
As for sapphire not getting used for the iPhone 6 show, there are two theories percolating via the blogosphere. One is that Apple hoped to announce an iPhone with a sapphire show however that GT Superior wasn’t capable of get yields as much as a adequate degree earlier than mass manufacturing kicked off. One other is that Apple critically pursued the thought of a sapphire iPhone show however finally retreated after discovering throughout drop checks that it was extra susceptible to shattering than glass.
Following information of GT Superior submitting for chapter, shares of the corporate are down by over ninety% and are at present buying and selling at about $zero.ninety.