Oct 7, 2014 7:28 AM
Merrimack, NH-based GTAT, sapphire manufacturer for Apple, files for Chapter 11 bankruptcy
MERRIMACK - GT Advanced Technologies filed for Chapter 11 bankruptcy on Monday, Oct. 6, 2014.
The sapphire manufacturer's stock dropped more than 90 percent on Monday.
The company had signed a $578 million contract with Apple to make screens for the tech giant.
However, the new iPhone 6 does not have a sapphire screen, although the Apple smart watch uses the technology.
GTAT says it plans to continue business as ususal.
"GT has a strong and fundamentally sound underlying business," said Tom Gutierrez, president and chief executive officer of GTAT in a statement. "Today's filing . . . 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."
In June, the company announced it would cut 1,100 jobs nationwide.