Apple's sapphire glass manufacturer has filed for voluntary bankruptcy, allowing it to reshuffle and make the most of its R&D.
GT Advanced Technologies provides Apple with the sapphire glass used on the iPhone 6, iPhone 6 Plus and iPhone 5S home buttons and camera lens. Although there was speculation the new iDevices would feature a complete sapphire glass screen, Apple opted for ion-strengthened glass because sapphire glass is too brittle in big sheets and would have been too expensive to install on the displays.
However, the material will be used as the screen on the forthcoming Apple Watch, although only on the two premium models.
Tom Gutierrez, president and chief executive officer of GT said in the company's Chapter 11 bankruptcy filing: "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.
"We are convinced that the rehabilitative process of chapter 11 is the best way to reorganise, protect our company and provide a path to our future success. We remain committed to our roots in innovation and our diversification strategy. We plan to continue to operate as a technology leader across our core set of businesses."
GT Advanced Technologies received a $578m (362m) pre-payment from Apple before it started manufacturing the sapphire glass elements for the latest production run of the smartphone. Public accounts have revealed the company had $85m (53m) in cash on 29 September.
Neither Apple nor GT Advanced Technologies have revealed whether this filing will affect the production of the Apple Watch or agreements between the two companies going forward.
