GT Advanced Technologies, Arizona partner of Apple to manufacture parts of sapphire, declared, referring to chapter 11 "United States Bankruptcy Code" the desire to reorganize its business. The company will continue to work on all contracts and will be able to fulfill all its obligations to the partners during the transition period.
In GT noted that as of September 29, 2014 the company's capital is approximately $ 85 million of equity. In addition, currently being sought investors, after signing an agreement that they will provide the company with additional income. These sources of funding should allow GT to meet all its obligations by the manufacturer related to daily operation of their business, including concerned timely payment of wages to employees and other expenses. In connection with the current problems GT Advanced Technolgies, President and CEO Tom Gutierrez gave a few comments.
GT is a leader in its field. Today's failure does not mean that we're going to go out of business, but rather gives us an opportunity to continue the implementation of our business plan, creating a solid foundation that will support the operation, to diversify its business and improve balance. We are convinced that the rehabilitation process as specified in Chapter 11, is the best way to reorganize, to protect and provide the path to the success of our company in the future. We remain committed to our tradition of innovation and diversification strategy. We plan to continue to be a leader in the field of technology of our core businesses.
Finance GT suffered heavy losses after the conversion process for the sake of supporting the partnership with Apple. The company focused its attention on increasing the production of sapphire for Apple, decided to reduce its cooperation with other partners. However, it remains unclear how the bankruptcy procedure GT Advanced Technologies impact on Apple, which has made some advance payments for services companies.
It was expected that Apple will use sapphire coating displays at least some special versions of the iPhone 6, but probably it was not meant to happen. Against the background of the news, Apple may take an unexpected decision to forego the use of sapphire parts, and it seriously complicate the already bad financial situation GT. At the moment, there is one product Apple, for the manufacture of which cupertino company is looking for suppliers of sapphire - is Apple Watch. But now it is unclear whether this be used for services to GT, and if so, whether the volume of products can provide the financial interests of GT Advanced Technologies.