GTAT bankruptcy complex chain

Apple sapphire glass supplier GT Advanced Technologies (hereinafter referred to as GTAT) on Thursday (9 may), said the company will not disclose the reasons for bankruptcy, and will require the court to seal key documents. Subsequent open court documents show that GT plans to stop the production of sapphire glass.

GTAT was originally expected to supply sapphire glass for future mobile devices. The company said on Thursday to the U.S. bankruptcy court that the company could not disclose information due to a restricted security agreement. In this case, investors suffered huge losses in property, this is rare.

GTAT filed an application for bankruptcy protection on Monday and attended the first public hearing on Thursday. The company's lawyers said at the hearing that, due to the confidentiality agreement, they can not disclose the reasons for bankruptcy and recovery plan.

GTAT last year reached an agreement with Apple Corp, using a factory in Arizona to produce sapphire glass for apple. Apple has always been strictly confidential product plans, and therefore often impose strict confidentiality restrictions on suppliers.

GTAT's attorney Luke Daspins (Luc Despins) also acknowledged that the company's share price fell 90% in the first three trading days of the facts. "I say to all shareholders and creditors that the company is saddened by the slump in value and will work hard to restore value. He said, "this is an ambitious statement, not a guarantee. "

The judge finally ended up with two hours of public hearings, and let GTAT, apple and the United States Department of justice under the bankruptcy agency U.S. lawyer Trustee private meeting.

Days Inn product Adams said the case is very complex. "It's like a Russian doll, you open the first found that there are four. "

The U.S. attorney's office criticized GTAT's lack of information disclosure: "the submission of documents can not meet the requirements of the court. "

It is not clear whether the court agreed to the request of GTAT. GTAT said that if the breach of confidentiality agreements, the company may face $50 million in compensation.

The court will make a final decision on the matter in October 21st.

GTAT shares rose 7.2% on Thursday to $1.18 in regular trading on the Nasdaq stock market.

According to the agreement reached before the GTAT and Apple Corp, the two sides will cooperate in Arizona set up factories, apple provides a total of $578 million of funds, and to help install furnaces and other equipment. The factory owned by apple, GTAT is responsible for the operation, is expected to employ 700 people.

Apple said on Wednesday that the company was surprised by GTAT's filing for bankruptcy protection, and is working with Arizona officials to discuss the next move.

A Pennsylvania GTAT shareholder has been submitted to the court for litigation group, accused GTAT of executives and directors to provide false and misleading information, and will also be the company last year, stock and bond underwriters Morgan Stanley, Goldman and Canaccord Genuity as a defendant.

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