Business & Tech
GT Advanced Files for Bankruptcy
GT Advanced and eight affiliates reported more than $1 billion in both assets and liabilities.
Short sellers profited on the Monday bankruptcy filing of Merrimack’s GT Advanced Technologies Inc.
GTAT -36.43% is a parts supplier for Apple Inc. AAPL +0.60%
According to the Wall Street Journal, GT Advanced filed for Chapter 11 bankruptcy protection Monday morning. The announcement sent the stock down more than 90% Monday on heavy trading volume.
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GT Advanced, a specialized materials company in the electronics industry, had been building an Arizona factory with Apple to produce synthetic sapphire screens for Apple devices. In August, GT Advanced told investors that the facility wouldn’t be fully online until next year. The anticipated time of completion was too late for the launch of the iPhone 6 and iPhone 6 Plus.
GT Advanced said Monday that it had about $85 million in cash as of Sept. 29, and it is now seeking debtor-in-possession financing. The company expects that it will receive court authorization to conduct business as usual during the reorganization effort.
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