GT Advanced Technologies surprises investors with unexpected Chapter 11 filing
The news was like a strike of lightning today: GT Advanced Technologies, the company expected to supply Apple with scratch-resistant sapphire glass for its new line of iPhones would be filing for Chapter 11 bankruptcy protection.
To refresh your memories, the new iPhone models do not use scratch-resistant sapphire glass.
“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,” said Tom Gutierrez, president and chief executive officer of GT. “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.”
The company said that as of two weeks ago, it had approximately $85 million in cash.
Shares in the company immediately crashed on the news, opening at $11.06 when the day began, and closing $0.80 when the markets closed – wiping out nearly $1.5 billion in value for its investors.