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Apple's Sapphire Glass Supplier Wants To Get Out Of The Sapphire Glass Business

Oct 10, 2014, 21:18 IST

GT Advanced, the Apple sapphire supplier that on Monday filed for bankruptcy, has sought approval to wind down its sapphire operations, according to headlines crossing Bloomberg.

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The wind down will reportedly result in the loss of 890 jobs. And GT said the cash burn from its Apple benefit is "not sustainable" and that its sapphire operations, as a result, must be wound down.

GT Advanced has requested that it file the details of this wind down under seal in bankruptcy court.

Shares of GT Advanced, which lost over 90% on Monday and then were extremely volatile over the last couple days, including gaining more than 100% at one point on Tuesday, were down more than 25% to $0.95 per share on Friday.

Last Friday, the stock was at around $11.

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In a note to clients earlier this week, analysts at Raymond James said the company's equity is likely worthless, with analysts at UBS adding that the stock is worth probably worth at most $0.75.

On Thursday, The Wall Street Journal reported some additional details of GT's bankruptcy, which are tied to a breakdown of its relationship with Apple, with which it struck a $575 million sapphire development agreement last year.

Overall, however, what precipitated GT's bankruptcy filing still remains largely unclear.

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