It does seem like a political play. Apple didn't pay the last instalment and didn't use sapphire in its iPhones so they throw a hissy fit? Which creditors are they protecting themselves from? Apples cash was payment for equity and ownership of machinery. What other loans have they and how can you throw $400M away in a year. This place seems to have crazy management.
If I were apple I would write it off. Get back in touch with the Gorrilla glass guys.
I am very curious why people are still trading GTAT stock? It is pretty much valueless because of the Chapter 11 filing, whatever the outcome, the share holders are the first to be screwed.
Whatever price it is at now is basically caused by the people that think that they can make a fast buck by gambling. It is pretty much like playing musical chairs except in this case, you really don't want a chair because it is full of spikes.
I am very curious why people are still trading GTAT stock? It is pretty much valueless because of the Chapter 11 filing, whatever the outcome, the share holders are the first to be screwed.
I think it's because it seems like a move for leverage as well as the obvious massive gains from the fluctuations - it trades hundreds of millions of dollars a day so people can make a lot of money very quickly. They've stated openly they aren't going out of business. The stock won't go to zero until it's certain they'll go to chapter 7.
Their operation is ongoing during bankruptcy but I wonder if they are Apple's sole sapphire supplier for the iPhone parts and probably upcoming iPad parts. If they are, Apple can't afford to let the plant shut down. I think they'll expect Apple to step in and give them what they need to keep going. But it's a very risky bet to make.
GTAT will likely end up in the same position they where in before contracting with Apple. So take a look at their stock value before the deal with Apple was realized and then discount the price a bit.
Hard to say. GTAT had a viable business before Apple, they may be able to rebuild that business. As far as that rebuilding goes it can't be much worst of an investment than many on the market
GTAT's solar equipment business, which ran at nearly a billion in revenue in 2011 and 2012, totally collapsed in 2013 with the expiration of certain subsidies. This happened before they got involved with Apple. That near billion dollars a year run rate in solar revenue was all of GTAT's revenue. So the entire company was on the skids and would likely have gone into bankruptcy about a year ago had Apple not come along with the first of a series of advance payments for the sapphire joint venture. The Apple deal was GTAT's Hail Mary attempt to get its legs back underneath it. Without it, I see nothing remaining of the business.
Anyone know why they would file chapter 11 for all 9 separate LLCs? Seems like it should just be for specific LLCs for sapphire. Also each filing listed, if I remember correctly $1 billion in assets and liabilities.
$1 billion in assets will not fetch $1 billion in a fire sale, while $1 billion in liabilities will remain $1 billion in liabilities unless and until a bankruptcy court approves a reduction or elimination of those liabilities. That's why a company that is seemingly solvent by just looking at the balance sheet may not truly be viable going forward. Especially if those liabilities represent short-term and medium-term debt that must be serviced or that is at risk of being recalled due to some change in the business that triggers advance or immediate repayment.
Or so it was on Tom Clancy novels I'd read. English isn't my native language so it's hard to keep up the acronyms sometimes!
OK... makes more sense now
BTW: I wasn't making fun of you... just my silly posting (too often perhaps?!) what pops into my head when I see a post. All this seriousness around here could use an injection of humor once in awhile... although I'm horrible at it, and should leave it to the pros. Where ya at Benji?...:D
Comments
Sorry if this has already been suggested, but why doesn't Apple just buy them?
Why? If GT's scientists and engineers couldn't hit their manufacturing targets, how would Apple ownership would change that?
How do you type that? Autocorrect keeps changing that to "dog" every time.
Back to more serious matters: if you're going to risk a Wife And Girlfriend, which one is it going to be and why?
If I were apple I would write it off. Get back in touch with the Gorrilla glass guys.
Why not buy it before it becomes a liability?
I am very curious why people are still trading GTAT stock? It is pretty much valueless because of the Chapter 11 filing, whatever the outcome, the share holders are the first to be screwed.
Whatever price it is at now is basically caused by the people that think that they can make a fast buck by gambling. It is pretty much like playing musical chairs except in this case, you really don't want a chair because it is full of spikes.
I think it's because it seems like a move for leverage as well as the obvious massive gains from the fluctuations - it trades hundreds of millions of dollars a day so people can make a lot of money very quickly. They've stated openly they aren't going out of business. The stock won't go to zero until it's certain they'll go to chapter 7.
Their operation is ongoing during bankruptcy but I wonder if they are Apple's sole sapphire supplier for the iPhone parts and probably upcoming iPad parts. If they are, Apple can't afford to let the plant shut down. I think they'll expect Apple to step in and give them what they need to keep going. But it's a very risky bet to make.
I wonder how this "winding down" would effect Apple's sapphire parts for the iPhone and iPod (e.g. camera cover, touch ID cover).
GTAT will likely end up in the same position they where in before contracting with Apple. So take a look at their stock value before the deal with Apple was realized and then discount the price a bit.
Hard to say. GTAT had a viable business before Apple, they may be able to rebuild that business. As far as that rebuilding goes it can't be much worst of an investment than many on the market
GTAT's solar equipment business, which ran at nearly a billion in revenue in 2011 and 2012, totally collapsed in 2013 with the expiration of certain subsidies. This happened before they got involved with Apple. That near billion dollars a year run rate in solar revenue was all of GTAT's revenue. So the entire company was on the skids and would likely have gone into bankruptcy about a year ago had Apple not come along with the first of a series of advance payments for the sapphire joint venture. The Apple deal was GTAT's Hail Mary attempt to get its legs back underneath it. Without it, I see nothing remaining of the business.
Anyone know why they would file chapter 11 for all 9 separate LLCs? Seems like it should just be for specific LLCs for sapphire. Also each filing listed, if I remember correctly $1 billion in assets and liabilities.
$1 billion in assets will not fetch $1 billion in a fire sale, while $1 billion in liabilities will remain $1 billion in liabilities unless and until a bankruptcy court approves a reduction or elimination of those liabilities. That's why a company that is seemingly solvent by just looking at the balance sheet may not truly be viable going forward. Especially if those liabilities represent short-term and medium-term debt that must be serviced or that is at risk of being recalled due to some change in the business that triggers advance or immediate repayment.
WAG: Wild Ass Guess
Or so it was on Tom Clancy novels I'd read. English isn't my native language so it's hard to keep up the acronyms sometimes!
True. I had to re-type at least 5 times!
OK... makes more sense now
BTW: I wasn't making fun of you... just my silly posting (too often perhaps?!) what pops into my head when I see a post. All this seriousness around here could use an injection of humor once in awhile... although I'm horrible at it, and should leave it to the pros. Where ya at Benji?...:D
That's not a well known acronym, but thanks for showing it to us.
Otherwise, this grand Adventure into an American run Sapphire plant is over!.
Apple should not have a hard time sourcing Sapphire in China...
BTW, Tim Cook does not suffer fools gladly!... only under duress (see Samsung, lol) so it is "bye,bye" GTAT.