GT Advanced Technologies, which makes super-strong sapphire device displays, announced Oct. 6 that it will continue to operate as usual while it reorganizes under Chapter 11 bankruptcy proceedings.
The company's sapphire displays were rumored for months to have been included in the new iPhone 6 models that Apple launched in September, but the super-strong display material was instead not featured in the new phones. It is not known if the lack of sapphire displays in the new iPhones is related to GT Advanced's latest financial woes.
GT Advanced, which is based in Merrimack, N.H., filed for Chapter 11 in the United States Bankruptcy Court for the District of New Hampshire so that it could continue to operate and work toward a reorganization plan to rebuild its business, according to a statement by the company.
"GT has a strong and fundamentally sound underlying business," Tom Gutierrez, president and CEO of GT, said in a statement. "Today's filing does not mean we are going out of business; rather, it provides us with the opportunity to continue to execute our business plan on a stronger footing, maintain operations of our diversified business, and improve our balance sheet."
Gutierrez said he and other company leaders are "convinced that the rehabilitative process of Chapter 11 is the best way to reorganize, protect our company and provide a path to our future success. We remain committed to our roots in innovation and our diversification strategy. We plan to continue to operate as a technology leader across our core set of businesses."
As of Sept. 29, the company said it has approximately $85 million in cash and that it is seeking debtor-in-possession financing, which would provide the company with an immediate source of additional funds. "These funding sources will enable GT to satisfy the customary obligations associated with the daily operation of its business, including the timely payment of employee wages and other obligations," the company stated.
GT Advanced Technologies produces crystal growth equipment for the global consumer electronics, power electronics, solar and LED industries.