Boston, MA 10/07/2014 (wallstreetpr) – GT Advanced Technologies Inc (NASDAQ:GTAT) which came into global prominence as the supplier of much sought after sapphire glass used by Apple Inc. (NASDAQ:AAPL) on its iPhone home button filed for bankruptcy earlier today. On the back of the news becoming public, the investors trooped into the stock leading to a huge 64 percent increase in its share price as of 12:00 ET. The Wall Street Journal which first broke the news has indicated that the firm was forced to seek legal protection due to a payment dispute that is brewing between itself and its supplier.
Apple Inc, GT Advanced Technologies Inc Partnership
Apple Inc. (NASDAQ:AAPL) had made public its plans last year to pour in nearly $578 million into GT Advanced Technologies Inc (NASDAQ:GTAT) proposed manufacturing plant expansion. The specialized glass maker had announced major plans to expand its production capacity to meet the increased demand for its product from Apple Inc. (NASDAQ:AAPL). Over the past few months, the component manufacturer has been facing delays in building out the new furnaces as part of the expansion project.
Analyst Comments
Analysts had in the recent past started to comment about the frayed relationship between the two firms, after it became public that Apple Inc. (NASDAQ:AAPL) had not used the synthetic sapphire produced by GT Advanced Technologies Inc (NASDAQ:GTAT) in its most recent iPhone 6 product releases. The Wall Street Journal has reported that the sapphire manufacturer has in its submissions to U.S. Bankruptcy Court in Manchester, New Hampshire listed assets of $1.5 billion. It has also listed liability of $1.3 billion. The numbers were reported as of June 28th.
Future Course Of Action
GT Advanced Technologies Inc (NASDAQ:GTAT) has also disclosed that it will continue to pursue its day to day operations even as it goes about reorganizing its business.
Shares of GT Advanced Technologies Inc (NASDAQ:GTAT) are sharply up by 63.12% and currently trading at $1.31.
