One of the biggest pieces of business tech news on Monday was the surprise bankruptcy of sapphire display supplier GT Advanced.
The company, which was worth $1.5 billion on Sunday night and is Apple's only sapphire crystal supplier, declared bankruptcy on Monday, catching investors off-guard. The company's stock fell 92 percent on Monday, only rebounding slightly since then. The company ... [ read the full article ]
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Originally posted by bhetrick: Or, on the flip side, did GT file bankruptcy to try and force Apple to make the final payment?
Those weren't really "payments" but a loan that had to be repaid so GT could start manufacturing sapphire. There would be no point in getting Apple make the final payment. GT probably went into bankruptcy so it could get out of whatever contract it had with Apple to manufacture sapphire. It will be interesting to see how much of Apple's loan the courts will force GT to repay.
Good old Galtian psychopaths shooting themselves in the foot. Haha.
Here's the oil; apart from closing two factories less than a year old and laying off nearly 900 workers:
Quote: ...GTAT has also asked that a New Hampshire bankruptcy court terminate its agreements with Apple, which it describes in a filing as "oppressive and burdensome." GTAT intends to come out of the bankruptcy by restructuring around its core businesses, including selling sapphire furnaces.
I am pretty sure GTAT must have consulted their lawyers before filing bankruptcy. Note that they have not files under chapter 11 so they may have something major up their sleeves !
