GT Advanced Technologies Inc fka GTAT

[TomSawyer]

WOW...

"Exactly what happened to GT's supply arrangement and the related financing deals with Apple hasn't been revealed. Some published accounts allege GT's synthetic sapphire wasn't tough enough; other accounts allege GT couldn't make enough of the stuff to reassure Apple that it could meet the demand for the new iPhones. One person told the Journal that Apple was continuing to work with GT to try to resolve technical issues.

Suppliers, bondholders and shareholders are anxious to ascertain the status of GT's relationship with Apple, to evaluate the company's chances for survival. Some are demanding money now, fearful that the rift won't be repaired.

"We're already getting calls and threats," GT lawyer James Grogan said.

Federal bankruptcy monitors are also clamoring for more information about the company's finances, in a case where the usual disclosures haven't been made. "The record is insufficient for the court to find what the court needs to find," Ann Marie Dirsa, attorney for U.S. Trustee William Harrington, said during the public portion of Thursday's hearing.

A lawyer for the U.S. trustee was invited into the secret court session.

During the public portion of Thursday's court session, bondholder attorney William Baldiga urged that the business be kept running. The company's bankruptcy has "taken everyone here by surprise, not just bondholders, but I'm sure the trade creditors as well," Mr. Baldiga said. Keeping GT on its feet preserves creditor hopes, the lawyer said.

As for investors who saw share prices plunge from $11 per share to under $1 per share in the wake of Monday's bankruptcy filing, GT lawyer Mr. Despins said, "The company feels terrible about that loss of value and we will work every day, 24/7, to try to recover that value."

online.wsj.com/articles/apple-gt-advanced-in-secret-session-with-bankruptcy-judge-1412877271