Apple supplier with unexpected chapter 11-filing

GT Advanced Technologies Inc. surprised the market this week by announcing that it had, together with certain of its direct and indirect subsidiaries, commenced voluntary cases under chapter 11 of the Bankruptcy Code. The filing was made in the United States Bankruptcy Court for the District of New Hampshire. Late last year, GT received a prepayment of some USD 578 million from Apple to ramp up production capacity for sapphire glass (The loan is due for repayment next year.). The new factory, located in Arizona, was supposed to lead to some 2'000 jobs. However, the new iPhones introduced last month did not feature GT sapphire glass, according to a Bloomberg report. Analysts are now speculating that the products might be too expensive for Apple or that the capacity is too low. GT's products will still make their way into the new iWatch, the report continues.