GT Advanced


'GT Advanced' Articles

Apple's Former Sapphire Partner GT Advanced Technologies Emerges From Bankruptcy

After filing for bankruptcy in 2014, and subsequently dissolving its supplier partnership with Apple, GT Advanced Technologies today announced its return from Chapter 11 "as a newly reorganized company." A group of unnamed financial sponsors have invested $80 million to assist in GT's emergence back into the market. "Our emergence from Chapter 11 marks the start of a new chapter for our company," said David Keck, GTAT's President and Chief Executive Officer. "Through this process, we have resolved the issues which led to our decision to seek bankruptcy court protection. With our strengthened financial flexibility, we will focus on our industry leading capabilities in the solar and sapphire markets." Before its Chapter 11 filing, GT was Apple's Arizona-based partner in sapphire production on the iPhone. In the weeks after the filing, Chief Operating Officer of GT Advanced, Daniel Squiller, blamed its rocky partnership with Apple as the main reason behind its bankruptcy. In an officially filed affidavit, Squiller described Apple's unquestionable control over GT's sapphire production -- and a legal contract which favored Apple -- as the culprit behind the manufacturer's inability to meet Apple's production targets, and eventual bankruptcy. After a few more reports in late 2014, centering around what Squiller claimed was Apple's brusque response to GT's indecision over signing a contract with the Cupertino company, not much else was heard regarding GT Advanced before today. On the Apple side of things, in 2015 the company confirmed plans to take over GT's former home

Apple and GT Advanced Reach Settlement on Remaining Sapphire Debt

Apple and its former sapphire supplier GT Advanced have reached an agreement that will allow GT Advanced to absolve itself of the remaining $439 million that it owes Apple, reports The Wall Street Journal. Under the settlement, GT Advanced will host an auction on November 23 to get rid of the equipment that it contributed to the sapphire making process, with the proceeds being split between the two companies. Equipment that does not sell during the auction will be given to Apple. While GT intends to hang on to some of the equipment--as many as 600 sapphire-making furnaces--it is prepared to auction what it can and abandon what it can't cart off, court papers say. Anything not sold will be handed over to Apple, which has agreed to scrap the equipment and extinguish the loan it made to transform GT from an equipment manufacturer into a supplier of smartphone-screen material.Following the dissolution of the relationship between GT Advanced and Apple, GT Advanced agreed to sell off its sapphire furnaces to repay the loan Apple had provided to buy the equipment in the first place. Over the course of the past year, GT Advanced has been unable to find a buyer for the sapphire furnaces. GT Advanced and Apple originally partnered up to produce sapphire displays for the iPhone 6 and the iPhone 6s Plus, but the deal soured when GT Advanced was unable to meet deadlines and produce sapphire that met Apple's standards. GT Advanced filed for bankruptcy in October of 2014, laying off more than 700 employees and shuttering the Mesa, Arizona factory, which Apple is repurposing

GT Advanced Laying Off 40% of Workforce Amid Bankruptcy Restructuring

GT Advanced is laying off 40% of its workforce as it negotiates the terms of a $95 million bankruptcy restructuring plan, according to The Wall Street Journal. The cuts will enable the former Apple supplier to save $20 million per year as it looks to emerge from Chapter 11 bankruptcy in the United States. The report claims GT Advanced had about 1,000 employees when it filed for bankruptcy last October after its sapphire crystal deal with Apple fell through. The company already laid off some 700 workers at a Mesa, Arizona manufacturing facility that Apple plans to repurpose as a $2 billion global data center. GT Advanced is reportedly committed to shifting its focus back to manufacturing industrial and solar equipment.A group of GT Advanced bondholders put up $95 million to fund the company’s bankruptcy restructuring. The company is using the cash to fund a revised plan that calls for the ex-Apple supplier to return to its roots of making industrial and solar equipment.While sapphire crystal rumors were widespread last year, Apple ultimately used ion-strengthened glass on the iPhone 6 and iPhone 6

Apple Objects to GT Advanced's Financing Plan Following Mesa Fire

Apple is objecting to GT Advanced Technologies' financing plan over concerns that it would undermine its existing settlement reached with the bankrupt sapphire crystal supplier last year, reports Re/code. GT Advanced reached a settlement with Apple in October 2014 after failing to produce sapphire crystal of the quality desired by the Cupertino-based company for potential use in future products. GT Advanced is attempting to restructure by raising $95 million through a loan agreement under the supervision of the U.S. Bankruptcy Court for New Hampshire, but the financing plan is contingent upon the company receiving enough insurance money to repair any damage to sapphire furnaces following a fire at its former Mesa, Arizona facility a few months ago. GT Advanced's inspection equipment damaged in Mesa facility fire last May Apple argues that GT Advanced already determined damage at the facility to be minimal, adding that the terms of the loan agreement give lenders too much leverage to foreclose on the sapphire furnaces that GT Advanced is supposed to sell in order to repay Apple. A group of GT Advanced shareholders have also reportedly questioned why the company needs to raise money nine months into bankruptcy. GT Advanced filed for bankruptcy last October after it became clear the company was spending over one million dollars per day to run its operations, despite being unable to produce sapphire acceptably by Apple's standards. The company began winding down its sapphire production and decommissioning the furnaces to prepare them for storage and resale through

Apple Facility in Mesa, Arizona Catches Fire

Local news affiliate ABC 15 Arizona is reporting that Apple's facility in Mesa, Arizona, which it acquired through its ill-fated partnership with GT Advanced last year, caught fire this afternoon. While the second-alarm fire has since been extinguished on the rooftop, which is equipped with multiple solar panels, local firefighters and emergency crews remain on the scene and authorities are investigating the cause of the blaze. Apple confirmed in February that it plans to repurpose the GT Advanced facility as a $2 billion data center. The data center will reportedly act as a "global command center" for Apple's global data network. Mesa fire crews confirmed that the fire was located near Elliot and Signal Butte Roads in east Mesa, coinciding with where the GT Advanced facility is situated. Update 12:20 PM Pacific: ABC 15 reports that fire crews from Mesa, Gilbert and Superstition Fire worked together to extinguish the fire within 35 minutes, and there are no reports of any injuries. The local news affiliate says the fire appears to have originated on the solar panels on the roof, and does not appear to have spread inside the