Boston, MA 10/09/2014 (wallstreetpr) – Apple Inc. (NASDAQ:AAPL) said on Wednesday that the news of GT Advanced Technologies Inc (NASDAQ:GTAT) bankruptcy filing comes as a real surprise. Apple will now plan out is plans accordingly. As of now, Apple is helping GT Advanced in the bankroll process as it procures the sapphire displays from GT Advanced’s Arizona factory.GT Advanced didn’t provide any clear explanations on the bankruptcy filing. Apple said that it is working with Arizona officials to decide on its next steps. The objective is also to preserve jobs in Arizona factory following GT’s decision of bankruptcy filing. It also said that it will continue to work with local and state officials to plan out the things in the future.
The bankruptcy filing
Sapphire maker GT Advanced Technologies Inc (NASDAQ:GTAT) along with its subsidiaries filed for bankruptcy protection. Following the news, GT Advanced’s shares plunged more than 90%. The bankruptcy filing was not expected by any of the market participants. The bankruptcy filing came after the iPhone 6 launch event. The new iPhones will not have sapphire display. The display was mentioned just for the Apple Watch. The updates were taken negatively by GT Advanced stocks.
The deal
Apple Inc. (NASDAQ:AAPL) made a deal with GT Advanced last year that GT will deliver Apple with Sapphire glass displays for its products. The two companies entered into a supply agreement in which GT advanced was allowed to use Arizona facility of Apple. Also, Apply decided to provide GT with prepayment of $578 million to be given in four installments. The reimbursement of the payments will start from 2015. As of now, Apple Inc. (NASDAQ:AAPL) can withhold the last installment due to be paid in October, due to some operational problems. The news that iPhone 6 will not have sapphire glass became the prime reason for GT Advanced Technologies Inc (NASDAQ:GTAT)’s fall/ The stock fell more than 25%in two trading sessions.
