“Apple Inc said on Wednesday it was surprised by supplier GT Advanced Technologies Inc’s bankruptcy filing this week, and is now considering its next steps,” Noel Randewich reports for Reuters.
“In the iPhone maker’s first public response, it said it was working with Arizona officials on its next moves,” Randewich reports. “‘We are focused on preserving jobs in Arizona following GT’s surprising decision and we will continue to work with state and local officials as we consider our next steps,’ spokesman Chris Gaither said.”
“GT’s first Chapter 11 bankruptcy court hearing is set for Thursday. The New Hampshire-based company has said it will then explain what led to Monday’s surprise bankruptcy filing that wiped out 90 percent of the sapphire supplier’s market value,” Randewich reports. “Shares of GT were up 30 percent at $1.57 on Wednesday morning. On Monday morning, the shares opened at $11.06.”
Read more in the full article here.
Related articles:
Shattered sapphire dreams at GT Advanced – October 8, 2014
Apple’s withholding of $139 million payment led to GT Advanced bankruptcy filing – October 7, 2014
GT Advanced CEO sold 9,000 shares the day before Apple’s iPhone 6/Plus event – October 7, 2014
Law firms launch investigations into possible violations of federal securities laws by GT Advanced – October 7, 2014
Analyst: Apple may take possession of sapphire furnaces from GT Advanced – October 7, 2014
Apple to provide debtor in possession financing to GT Advanced? – October 7, 2014
Investors stunned over GT Advanced bankruptcy filing – October 7, 2014
GT Advanced files for chapter 11 bankruptcy court protection – October 6, 2014
Apple and GT Advanced rampup sapphire production in Mesa – August 11, 2014
GT Advanced expects sales of sapphire production tools to boost profit; shares surge – August 5, 2014
Apple and GT Advanced open second sapphire plant in Salem, Massachusetts – June 19, 2014
Apple patents method for embedding sapphire displays in LiquidMetal device chassis – May 27, 2014
When it comes to Apple news, tune out the noise and ignore anything that doesn’t come directly from Apple.
If you don’t know that by now, you don’t know anything about Apple.
Why wouldn’t GT Technology have warned Apple in advance that this would happen unless it’s against SEC rules?
I think there are two answers to your question.
1. Yes, it would be illegal (against SEC rules) for them to do so. At least directly.
However…
2. Give the relationship they supposedly share, they could have simple informed Apple of their limited cash on hand, which supposedly auto-triggered the filing.
I could be totally wrong on this, but that is what I’ve gotten from what I’ve read about it so far.
Apple is a creditor, so it would have privy and access to full financial information as stipulated in it’s credit agreement, which I’m sure Apple would have prepared and provided.
Sounds like that fukoranutang, always surprised
“We are focused on preserving jobs in Arizona following GT’s surprising decision”
Yea, Apple’s looking into taking over now.
I don’t doubt that Apple was surprised.
“Preserving jobs” is code for “We don’t want this potential supply of sapphire to dry up; it’s crucial for future products.”.
Ditto!