In a shock move, major PV equipment provider, GT Advanced Technologies (GTAT) said it would file for chapter 11 bankruptcy in the District of New Hampshire, US.
GTAT noted that it had US$85 million of cash and that it was also seeking debtor-in-possession financing to carry on operations during what it hopes to be a successful restructuring.
“GT has a strong and fundamentally sound underlying business,” said Tom Gutierrez, president and chief executive officer of GT. “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.”
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The company was not specific on the reason for needing to restructure its operations, although it had invested significantly in manufacturing capacity and technology to support Apple migrate to sapphire-based smart phone screens, which have yet to be commercialised.
GTAT suffered a heavy hit on its shares recently, after Apple launched the iPhone 6 without sapphire-based screens.
The company had recently announced and then postponed a financial analyst event for the beginning of October to provide an update on business developments after the share price hit in September.
“We are 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. 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,” added Gutierrez.