The shares of GT Advanced Technologies Inc (NASDAQ:GTAT) fell 51.85% yesterday to close at $0.390, post its bankruptcy proceedings. It was further revealed that the financially troubled company didn’t own the sapphire glass manufacturing facility and was accountable for $439 million prepaid loan from Apple Inc (NASDAQ:AAPL).
The troubles of GTAT have quadrupled after the disclosure of its current financial standings. In addition to the prepaid loan from Apple, the company didn’t even own the Advanced Sapphire Furnaces. Further, the furnace maker revealed $50 million penalty condition from Apple applicable only if it was to reveal the products of the iPhone maker. GT Advanced Technologies Inc (NASDAQ:GTAT) is disclosing more information about the company and its relationship with Apple Inc (NASDAQ:AAPL) stating the supplier agreement with the iPhone maker as “oppressive and burdensome.”
One thing is clear from the details that the furnace maker has revealed in the court that the company is likely to pin Apple for its bankruptcy filing and financial troubles. On the contrary, GT Advanced Technologies Inc (NASDAQ:GTAT) might consider disclosing more information that might be helpful in its case and the fact that judges would consider creditors’ rights to corporate confidentiality rights in the bankruptcy proceedings, the revelation might just make the thing easier for the furnace maker.
According to the financial disclosure of the company, GTAT has $85 million in cash and current expenses of up to $1 million per day, which leaves it to one option i.e. close down its sapphire glass manufacturing facility. The company has indicated earlier that it is likely to lay off its Arizona workers and the unit alike. Considering all of these facts, it’s quite clear that the furnace maker should be ready for some mass financial transformation in the upcoming days.
This article has been written by Prakash Pandey.