GT Advanced Technologies Inc. -- the company that partnered with Apple Inc. last year to manufacture sapphire glass in east Mesa -- saw stock prices plunge by more than 90 percent after filing for Chapter 11 bankruptcy protection on Monday.
The bankruptcy filing means New Hampshire-based GT is trying to protect its assets and operating budget while it reorganizes its debt through the courts.
"Today's filing does not mean we are going out of business," Tom Gutierrez, GT's CEO and president, said in a statement. "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. 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."
The bankruptcy filing states the company has $1.3 billion in liabilities and $1.5 billion in assets. It comes almost a year after GT signed a multi-year, $578 million-contract with Apple to manufacture sapphire glass at a 1.4 million-square-foot plant in east Mesa, which is set to launch next year.
Gutierrez's statement did not mention how the bankruptcy filing might impact the Mesa plant or its relationship with Apple. Calls to GT, Apple and the city of Mesa were not immediately returned Monday morning.
The statement said GT had $85 million in cash as of Sept. 30, but was seeking debtor-in-possession financing to help pay its employees and fund other daily operations. Debtor-in-possession financing is when another entity takes control of the assets and operations of a company undergoing the Chapter 11 process.
GT reported a loss of more than $127 million during the first half of this year, according to filings with the Securities and Exchange Commission, a portion of which the company attributed to costs associated with increasing sapphire glass production.
Apple uses sapphire glass for cameras on its iPhones. There was speculation that the newest iPhone 6 screens would be made out of the material, but those rumors were proved false when the device rolled out earlier this month.