Ending Soon! Save 33% on All Access

Apple Partner Files for Bankruptcy The company that developed the scratch-resistant sapphire glass that was left out of Apple's new large-screen iPhones is in financial distress.

By Reuters

This story originally appeared on Reuters

GT Advanced Technologies Inc, a partner with Apple Inc in a sapphire glass plant in Arizona, said it had filed for voluntary bankruptcy protection.

Shares of the company fell more than 90 percent to 96 cents after a trading halt was lifted on the Nasdaq.

The company suffered a major setback last month when its scratch-resistant sapphire glass was left out of Apple's new large-screen iPhones.

"It would appear that something very fundamentally broke down in the relationship between Apple and GT Advanced," Raymond James analyst Pavel Molchanov said in an email.

Up to Friday's close, GT Advanced shares had slumped 36 percent since Sept. 9 when Apple unveiled its latest iPhones.

GT Advanced , whose subsidiaries also filed for bankruptcy, said it had $85 million of cash as of Sept. 29.

The company listed assets and liabilities in excess of $1 billion in its Chapter 11 petition.

The company, which filed for bankruptcy in a U.S. bankruptcy court in the District of New Hampshire, said it was seeking debtor-in-possession financing to get access to additional funds.

GT Advanced said it expected the court to authorize it to continue to conduct business as usual while it reorganized.

The company's shares had more than doubled in the nine months between last month's unveiling of the new iphones and Nov. 4, when the Arizona plan was first announced.

The stock traded as high as $20.54 in early July.

(Reporting by Swetha Gopinath in Bangalore; Editing by Sriraj Kalluvila)

Want to be an Entrepreneur Leadership Network contributor? Apply now to join.

Business Models

How to Become an AI-Centric Business (and Why It's Crucial for Long-Term Success)

Learn the essential steps to integrate AI at the core of your operations and stay competitive in an ever-evolving landscape.

Business Ideas

63 Small Business Ideas to Start in 2024

We put together a list of the best, most profitable small business ideas for entrepreneurs to pursue in 2024.

Cryptocurrency / Blockchain

Bored and Hungry, the fast food restaurant that uses NFT's from the Bored Ape Yacht Collection for its image

The most famous apes of the digital world are very present in a fast food place in California.

Business News

'Creators Left So Much Money on the Table': Kickstarter's CEO Reveals the Story Behind the Company's Biggest Changes in 15 Years

In an interview with Entrepreneur, Kickstarter CEO Everette Taylor explains the decision-making behind the changes, how he approaches leading Kickstarter, and his advice for future CEOs.