GT Advanced Technologies files for chapter 11 bankruptcy


GT Advanced Technologies and seven subsidiaries including Advanced CZ LLC filed for bankruptcy protection today. Under the chapter 11 filing the company will be allowed to restructure, and GT says that it will continue business as usual while developing a reorganization plan.

The shock filing follows news in September that Apple will make its own screens for the iPhone 6 instead of using GT's sapphire screens, which prompted an estimated 35% drop in stock prices. GT's Sapphire products are being used for the iPhone 6 camera and the Apple Watch, and the company still holds a US$578 million, multi-year supply contract with Apple from November 2013.

“It does seem to be related very closely to the Apple deal that never was,” notes GTM Research Lead Upstream Analyst Shyam Mehta. “Solar has been tough for the last few years, but it wasn't the straw that broke the camel's back.”

GT says that it is currently seeking debtor-in-possession financing to secure immediate funds. The company says that along with the US$85 million in cash that it currently holds, it will be able to continue to pay wages on time as well as meeting other obligations.

This current cash position is a far cry from the $333 million that GT reported at the end of the second quarter, and the company declined to comment on this. The company has invested heavily in a new sapphire facility in Arizona related to the Apple deal, including cash prepayments of $103 million in the second quarter of 2014.

Popular content

GT has been an innovator in the PV equipment and polysilicon space, and is currently commercializing a number of technologies, including its Merlin interconnection technology and HiCZ ingot pullers.

“GT has some interesting solutions for the next wave in the PV industry,” notes GTM Research's Mehta. “It's sad and a little upsetting that their plans would be waylaid because of the bankruptcy proceedings.”

GT has warned that NASDAQ may temporarily halt trading of shares, which dropped from around $11 to under $2 before 11 AM.

This content is protected by copyright and may not be reused. If you want to cooperate with us and would like to reuse some of our content, please contact:


Related content

Elsewhere on pv magazine...

Leave a Reply

Please be mindful of our community standards.

Your email address will not be published. Required fields are marked *

By submitting this form you agree to pv magazine using your data for the purposes of publishing your comment.

Your personal data will only be disclosed or otherwise transmitted to third parties for the purposes of spam filtering or if this is necessary for technical maintenance of the website. Any other transfer to third parties will not take place unless this is justified on the basis of applicable data protection regulations or if pv magazine is legally obliged to do so.

You may revoke this consent at any time with effect for the future, in which case your personal data will be deleted immediately. Otherwise, your data will be deleted if pv magazine has processed your request or the purpose of data storage is fulfilled.

Further information on data privacy can be found in our Data Protection Policy.