GT Advanced Technologies (GTAT), a global supplier of solar products, LED and sapphire, suddenly filed for Chapter 11 bankruptcy court protection this Monday. Nonetheless, the global solar supply chain won’t be impacted because GTAT has been fading out from solar business.
GTAT has won a massive prepayment form Apple, the supply chain of sapphire and LED products therefore are expected to be severely influenced. AppleIndiser reported that GTAT said it plans to continue conducting business on September 29th. However, it officially filed for bankruptcy only one week after the announcement. Trading of GTAT stock was completely halted on Monday morning in advance of the bankrupt announcement. GTAT’s shares plummeted more than 90% once trading resumed.
"Today's filing does not mean we are going out of business; rather, it 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,” said Tom Gutierrez, president and chief executive officer of GT.
In terms of GTAT’s solar segment, although the company had unveiled certain solar-related products and technologies, such as Merline (a cell metallization and interconnect technology) and HiCz continuous feeding puller technology, it has been abating efforts in this part. Its position in the global solar industry has also been reduced.
“GTAT doesn’t focus on developing solar business recently, its bankruptcy is not likely to cause any severe impact on the global solar supply chain and solar industry,” explained Corrine Lin, Analyst of EnergyTrend.