San Francisco-based Mission Motorcycles, a maker of high-end electric motorcycles, recently filed for bankruptcy amid financial troubles. In the filing, current CEO Mark Seeger said the company is so low on cash that it can’t afford to pay for an attorney for the bankruptcy process, but while recently talking with Reuters, former CEO Derek Kaufman dismissed the company’s lack of money and instead blamed Mission’s demise on Apple’s poaching of top engineers… expand full story
bankruptcy Stories October 19, 2015
bankruptcy Stories May 14, 2015
Apple recently voiced concerns over the potential sale of its customer data as part of RadioShack’s bankruptcy filing. As an authorized reseller of Apple’s products, RadioShack is sitting on a collection of customer data of Apple product owners. According to Law360, Apple has formally objected to any data on its product sales through RadioShack being made available for sale citing the reseller agreement between the two companies and its interest of protecting personal data. expand full story
bankruptcy Stories February 2, 2015
Following the October surprise bankruptcy filed by GT Advanced Technologies—a key sapphire supplier for the iPhone—Apple today announced plans to invest $2 billion over the next 30 years in the failed plant. The Mesa, Arizona-located plant will become the central command center for its various data centers around the globe.
“We’re proud to continue investing in the U.S. with a new data center in Arizona, which will serve as a command center for our global networks,” Kristin Huguet, a spokeswoman for Cupertino, California-based Apple, wrote in an e-mailed statement on Monday. “This multibillion-dollar project is one of the largest investments we’ve ever made.”
bankruptcy Stories November 25, 2014
As Apple and would-be sapphire supplier GT Advanced Technologies come closer to a settlement following the latter’s recent bankruptcy announcement, GT’s creditors will get to take a look under the wraps of the secretive Cupertino tech giant.
As noted earlier today by the Wall Street Journal, Apple will provide GT’s creditors with documents regarding the companies’ arrangement in response to inquiries attempting to determine whether the proposed settlement is fair, or whether Apple is trying to take advantage of the situation.
bankruptcy Stories November 6, 2014
GT Advanced’s recent trading activity under investigation by SEC following bankruptcy filing
GT Advanced disclosed on Thursday that the U.S. Securities and Exchange Commission is seeking information about the sapphire glass maker’s trading activity since January 2013 after it filed for Chapter 11 bankruptcy last month. GT Advanced’s latest Form 8-K report claims that the company is fully cooperating with the SEC during its investigation.
bankruptcy Stories October 29, 2014
While lawyers for bankrupt sapphire supplier GT Advanced confirmed previously that it had reached an agreement to repay Apple approximately $439 million, many details regarding what exactly went wrong in the partnership had not been disclosed publicly. Today we get what might be the clearest explanation yet of what happened between the two companies leading up to GTAT filing for Chapter 11 bankruptcy last month. In a declaration filed by COO of GT Advanced Daniel Squiller with the courts yesterday (via Fortune), the company outlines previously sealed info regarding its deal with Apple and terms of the deal that lead to GT’s bankruptcy filing.
When GTAT initially entered into negotiations to sell sapphire furnaces to Apple, it had no sense that, having borrowed hundreds of millions of dollars to pay for the components of more than 2,036 sapphire furnaces, it would end up being unable to meet its cost and production targets for reasons that it believes were beyond its control as well as unforeseen difficulties in scaling its technology to 262kg boules to meet evolving product specifications.
While noting that the deal was “an ambitious transaction for the production of sapphire in quantities, size and quality never before achieved,” the document reveals a number of strict terms Apple imposed in the deal that the company describes as limiting its ability to achieve Apple’s requirements for sapphire production. Here’s a few of the more interesting bits: expand full story
bankruptcy Stories October 14, 2014
Apple is seeking to keep its involvement in GT Advanced’s Chapter 11 bankruptcy filing secret as it reportedly asked courts to file its objections in the case under seal. Bloomberg reports that Apple has requested permission to keep its comments in the case secret to avoid disclosing “confidential research, development, or commercial information regarding Apple’s business processes.” expand full story
bankruptcy Stories October 10, 2014
GT Advanced closed court hearing was to seek permission to close the sapphire plant
Sapphire crystal maker GT Advanced Technologies, which filed for Chapter 11 bankruptcy protection earlier this week, has asked the court’s permission to “wind down” operations at its manufacturing plant, less than a year after announcing a high-profile deal to supply the material to Apple.
As we noted earlier, the reason for the company’s failure appears to be that it was unable to meet Apple’s requirements for sapphire displays for the iPhone 6, though it remains unclear whether this was a quality issue or an inability to supply the volumes needed.
The court will hear the company’s motion on 15th October.
KGI stated earlier this week that the bankruptcy of GT Advanced is unlikely to have any impact on the Apple Watch as there are other suppliers able to provide sapphire screens in the sizes needed, but it may be that Apple will rethink its plans to use sapphire for future iPhones.
Image credit: azcentral.com
bankruptcy Stories October 9, 2014
The Wall Street Journal has published new information about the breakdown of a deal between Apple and GT Advanced Technologies Inc. that led the latter to file for bankruptcy earlier this week. As was previously noted, Apple withheld a $139 million payment from the sapphire supplier, though the exact reasoning was unclear.
In a research note released yesterday, KGI confirmed that GTAT was Apple’s first choice for these displays because the company had created a process that provided superior drop test results. Now the Journal reports that the payment was withheld after GT Advanced failed to meet Apple’s requirements for the iPhone 6 display.
bankruptcy Stories October 8, 2014
Apple has now officially commented on the startling announcement that sapphire supplier GTAT will file for bankruptcy. Like most observers, Apple was “surprised” by the move. Apple told the Wall Street Journal:
In its first comments since GT’s Chapter 11 filing Monday, Apple said, “We are focused on preserving jobs in Arizona following GT’s surprising decision and we will continue to work with state and local officials as we consider our next steps.”
Wall Street Journal sources indicate that GTAT was forced into financial distress because Apple withheld the final tranche payment of its contract, totally $139 million. Apparently, the sapphire supplier did not meet the agreed terms so Apple exerted its contractual right to withdraw. From the statement, it seems that Apple did not expect the consequential ramification of bankruptcy, however.