Apple’s sapphire glass manufacturer, GT Advanced Technologies Inc. filed for bankruptcy on Monday listing more than $1 billion in debt.
Apple’s uses Sapphire glass in home buttons and camera lenses for iPhone 5s, 6 and 6 plus. GT Advanced incurred a major loss last month when its scratch-resistant sapphire glass was left out of Apple’s new large screen which was speculated by many investors and users to be present.
GT Advanced’s stocks slumped more than 90 per cent to 75 cents. The net worth of the company rolled down from $1.5 billion to $175 million. The company was worth more than $2.8 billion in early July.
Tom Gutierrez, president and chief executive officer of GT, said:
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.
We are convinced that the rehabilitative process of chapter 11 is the best way to reorganise, 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.
GT Advanced on 5th August said that the company is expecting to receive an amount of $139-million from Apple. Till date Apple has made a payment of $439-million to the sapphire manufacturer.
The manufacturer, which is set to have its sapphire included in the Apple Watch going on sale in 2015, is due to begin repaying Apple for its loan starting next year.