Wearables & Gadgets

Supplier of Apple’s sapphire displays files for Chapter 11 bankruptcy protection

Apple Watch

Though there were a ton of rumours about the new iPhones utilizing sapphire glass, Apple’s September event revealed that only the upcoming Apple Watch would use this scratch-resistant material. However, it looks like Apple’s supplier of said material is in some financial trouble.

GT Advanced Technologies filed for Chapter 11 bankruptcy protection today. The company announced its filing in a press release issued this morning, stating that it is now seeking debtor-in-possession financing, an “immediate source” of extra funds for GT Advanced Technologies.

GT is doing its best to spin this as a positive step towards a healthier corporation and that the “rehabilitative process” of Chapter 11 is the best way to reorganize and “provide a path to [the company’s] future success.” President and CEO Tom Gutierrez said today that this does not mean the company is going out of business.

“GT has a strong and fundamentally sound underlying business,” Gutierrez 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.”

The company didn’t offer any details of restructuring plans in this morning’s announcement, though it has promised more information once it becomes available. It also now has a ‘Restructuring Information’ section under the ‘About us’ header on its website. Currently, this section contains only a link to the press release from today and the promise of additional information on the website of claims administration firm Kurtzman Carson Consultants. GT’s page on KCCLLC shows that no  date for the meeting of creditors has been set.

[source]GT Technologies[/source][via]TechCrunch[/via]

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