A completed Chapter 11 sometimes results in the bank selling the company to another company (usually to a healthy competitor looking to eliminate competition).
GTAT is different though.. GTAT's sapphire business is only a part of the whole company. And Apple owns a good portion of the Sapphire business (ovens, facility, etc.). My understanding is Apple is not using Sapphire right now because it's not working 100% yet.
So my predictions:
(1) Most people don't think Apple will go into the manufacturing of sapphire screens. BUT.. Tim Cook is a manufacturing guy right? One guess is they could take ownership of GTAT's sapphire facility (to avoid the loss) and turn it into an Apple owned/run R&D lab until the sapphire screens work 100%. In finance, R&D is "indirect-cost" and can be written off like rent, utilities, expenses, etc. Mfg is "direct-cost" and go into the price of the product.
(2) Apple does not want competitors to end up with sapphire on their products first. So they may also work out a deal with GTAT and keep moving forward. Apple certainly has the cash to fix this.
(3) One thing is for sure, someone else WILL come out with a screen stronger than Gorilla glass soon. Apple and GTAT are losing time and money with this BK. Imagine Samsung announcing a better-than-sapphire screen during this BK hearing?
(4) Apple has become the stubborn-greedy-spoiled-rich-fat-kid. I'm sure their performance agreements with GTAT allows Apple to give/sell the entire sapphire facility and inventory to another company who can deliver and perform better (3M, etc.)
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These are all just personal opinions
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Disclaimer: My posts should not be construed as investment/trading advice and is not meant to be a solicitation or recommendation to buy, sell, or hold any securities mentioned. Please perform your own due-diligence and make your own investment decisions.