Ars Technica:
On Monday, GT filed for Chapter 11 bankruptcy. And today, GT said in separate filings with the US Bankruptcy Court in New Hampshire that it wants to terminate its contract with Apple and close the Arizona facility.
The filing to end the contract with Apple states that the terms of GT’s contract with Apple are “oppressive and burdensome,” and the separate filing requesting to shutter the sapphire plant claims that doing so is the only way to rescue GT’s business.
Anyone have any doubt that we haven’t heard all the details of this story and yet and that it’s going to get a lot uglier before its resolved?
What a bunch of crooks…..
So, they couldn’t afford lawyer and accountants to figure out the contracts and expectations?
…how much did the insiders make selling stock along the way?
So sorry for the GTAT shareholders…
Does anyone seriously doubt at this point that Gutierrez is going to jail? The SEC will be going through his underwear for a long time in any case.
Somebody please refresh my memory… Was GT one of those companies run by egotist assholes who blabbed about having a sweet deal with Apple before they were supposed to?
Did GT have a change of leadership or something? Sounds like they want to go back to the “good old days” when they were a niche solar component provider.
Perhaps this is better all around, as someone actually interested in the sapphire technology will pick it up.
Why did Apple release the statement that they are trying to save jobs
when company is asking for closing of the plant.
Apple just looks really negligent on this.
This looks like Apple try to have US jobs and
probably wanted to build Watch in the US and
now have changed their mind. iphone using sapphire
was false leak.
So what they’re saying is they aren’t able to meet Apple’s quality requirements? They over promised and under delivered? The best synthetic sapphire makers are in Russia. That could be an issue these days. Apple might have to do their own.
Apple released the statement because Apple is trying to save the jobs.
GT is the one that wants to close the plant and lay everyone off.
There’s an article in today’s Arizona Republic that states that GTAT owes about half of their debt to Apple. I hope Apple steps in and takes over the plant in Arizona, keeps the people who know how to produce the sapphire product (including basically all but the management of GTAT who seem incompetent to me) and just produces what they need. Apple likes to control critical parts of the production process and despite the speculation that the problems were related to iPhone screens, there’s no evidence of that. Apple may just need current production for their TouchID sensors and camera lenses for iPhones and iPads, despite what the ASU prof says on the video on this page (http://www.azcentral.com/story/money/business/2014/10/10/gt-advanced-seeks-layoffs/17037843/). It would be easy for a bankruptcy judge to allow Apple, as the major creditor, to take over the facility if they asked to be allowed to do so.
I’m not a stock investor, but I was thinking about a month ago the GTAT would be a good stock to invest in. It’s probably a good thing I cannot afford stock investments.
I’ll be interested to see how a plan to sue the company that wanted to give you exclusive manufacturing rights for the most popular device on the planet works out.
Looks like using an Apple infrastructure loan for executive compensation might not have been the smartest move.
Perhaps someone wasn’t ready to play in the big leagues?
That usually turns out to be the case. Companies that mess up partnerships with Apple are often the ones who have a hard time keeping egos in check.