NASDAQ:GTAT - GT Advanced Technologies has announced on Monday that it has, along with all its subsidiaries, filed for Chapter 11 bankruptcy.
The sapphire crystal producer of LED, solar and power electronics equipments "commenced voluntary cases under chapter 11 of the Bankruptcy Code in the United States Bankruptcy Court for the District of New Hampshire," according to a GT press release.
GT is hopeful of the court's approval for the company to continue working as usual. "While it devotes renewed efforts to resolve its current issues and develop a reorganization plan," the statement reads.
GT Advanced shares were re-opened on Monday after being frozen momentarily prior to the announcement. They performed poorly yesterday, going down more than 90% to $1.06.
Before making the surprise announcement, GT Advanced shares were estimated at about $1.5 million. This price has drastically fallen to $175 million.
Reports indicate that GT Advanced had just about $85 million in cash as of September 29, 2014.
The company, which signed a multi-year agreement with Apple in November to supply the tech giant with sapphire material, is "now seeking debtor-in-possession financing," who will support the company with much needed funds.
The company said these funds would allow GT to continue "to satisfy the customary obligations associated with the daily operation of its business, including the timely payment of employee wages and other obligations."
"Today's filing does not mean we are going out of business, rather it provides us with an opportunity to continue to execute our business plan on a stronger footing, maintain operations of our diversified business, and improve our balanced sheet," said Tom Gutierrez, President and CEO of GT Advanced.
NASDAQ:GTAT - GT Advanced Technologies is "convinced that the rehabilitative process of chapter 11 is the best way to reorganize, protect our company and provide a path to our future success," Gutierrez explained.
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