The deal began well, and both partners were upbeat about the prospect of their union. Apple Inc. (NASDAQ:AAPL) had come into a partnership with GT Advanced Technologies Inc (NASDAQ:GTAT) for the production of strong sapphire material for use in making gadget screens. But when it became clear that GT couldn’t supply hard enough material for iPhones, Apple simply dialed Corning Inc. for hard glass.
Since it became apparent that sapphire wasn’t going to be used in making of the new iPhones, things haven’t been the same for GT Advanced Technologies Inc (NASDAQ:GTAT), a company that altered its activities to accommodate their deal with Apple Inc. (NASDAQ:AAPL).
Now, the company has applied for bankruptcy. Investors had waited to know the details that formed the basis for the application, but that didn’t happen Thursday as GT Advanced Technologies Inc (NASDAQ:GTAT) argued that it’s tied to non-disclosure agreement. The company lawyer also argued that the same confidentiality agreement bars the company from revealing its game plan.
The deal between the two companies involved a repayment loan of $578 million, given in installments to GT to outfit an Arizona factory where it was to produce sapphire for Apple Inc. (NASDAQ:AAPL) iPhones and other mobile products.
While there was a lot of hope that the factory would produce materials for use in iPhone 6 and iPhone 6 Plus, GT Chief Executive Officer Thomas Gutierrez had earlier made it clear that the plant wouldn’t be operational until 2015.
With no pointing information coming from the company, investors have been put into a quagmire, not able to determine the next move.
The fate of the company isn’t clear. There haven’t been any revealing explanations coming from their end. GT Advanced Technologies Inc (NASDAQ:GTAT) stock slumped 93% Monday, losing close to $1.5 billion in value.
This article has been written by Victor Ochieng.