GT Advanced Technologies Inc (GTAT) Bounces Back on Apple Inc (AAPL) Post Bankruptcy

GT Advanced Technologies Inc (GTAT)

After filing chapter 11 bankruptcy this week, GT Advanced Technologies Inc (NASDAQ:GTAT) made it clear that it might pursue legal claims against Apple Inc (NASDAQ:AAPL) while undergoing bankruptcy.

The company further indicated that it would move back to its sapphire furnaces business instead of manufacturing Sapphire products for the iPhone maker. The announcement that Apple is getting along with competitor Gorilla Grass has triggered major steps from the company. In its statement, the sapphire glass manufacturer company said, “Only if GT winds down these operations will it be able to stop its mounting losses and re-focus its resources on the operation of its core business of selling sapphire furnaces and other products.”

GT Advanced Technologies Inc (GTAT)

According to the company, it is losing as much as $1 million per day by continuing the targeted operations. Further, GT Advanced Technologies Inc (NASDAQ:GTAT) is likely to cut up to 890 jobs in its Arizona plant and it is likely to close down its operations in Arizona and Salem, Mesa, and Massachusetts to control its losses from continuing operations. The management said that it might take up to the end of the year to close operations at these target locations.

Further, the furnace maker added in its filing, “GT believes that it has many claims against Apple arising out of its business relationship with Apple.” Management added that the company might not be able to pursue the unspecific claims but it would allow GT to close several burdensome agreements with Apple Inc (NASDAQ:AAPL).

In response, the iPhone maker said that it would try to preserve the jobs at Arizona and it is discussing the matter with state authorities. Last year, GT Advanced Technologies Inc (NASDAQ:GTAT) and Apple Inc (NASDAQ:AAPL) joined hands to turn GT into sapphire manufacturer for the iPhone maker from its existing sapphire furnace business. Apple provided funding of $578 million for setting up the Arizona plant and associated operations of the company.

This article has been written by Prakash Pandey and edited by Serkan Unal.

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