GT Advanced had surprised everyone when it filed for bankruptcy protection Monday, and now we are learning a few more details about the company's financials. Although at one point a rising star in the tech world with its sapphire manufacturing business, GT Advanced's reliance on a single customer, Apple, may have made it vulnerable.
GT Advanced had spent $248 million in cash in one quarter and the Wall Street Journal reported that Apple had withheld the last $139 million payment, though it's unclear as to why:
That may have led to the company's filing, since its cash, at $85 million, was below a $125 million trigger point that would allow Apple to demand repayment of about $440 million in loans it had advanced. Apple had agreed to lend GT a total of $578 million to help get a large sapphire factory in Arizona up and running. The tech giant reportedly withheld the last $139 million payment it was due to make, although it isn't clear why.
Do you think GT Advanced should have opened up to other partners of its technology rather than banking on Apple?