GT Advanced Tech File For Bankruptcy - Quick Facts

(RTTNews) - GT Advanced Technologies Inc. (GTAT) announced that it had, together with certain of its direct and indirect subsidiaries, commenced voluntary cases under chapter 11 of the Bankruptcy Code in the United States Bankruptcy Court for the District of New Hampshire.

GT said it expects the court will authorize the company to continue to conduct business as usual while it devotes renewed efforts to resolve its current issues and develops a reorganization plan.

GT indicated that as of September 29, 2014 it had approximately $85 million of cash. In addition, it is now seeking debtor-in-possession financing, which, once obtained, would provide the company with an immediate source of additional funds. These funding sources will enable GT to satisfy the customary obligations associated with the daily operation of its business, including the timely payment of employee wages and other obligations.

As a result of the filing, and as is customary with public companies, NASDAQ may temporarily halt trading in the company's stock pending the receipt of additional information on the company's financial condition. The company noted that it is cooperating with NASDAQ and will be providing any requested information as promptly as possible.

"GT has a strong and fundamentally sound underlying business. 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.

The company indicated that it expects to provide additional details with respect to the chapter 11 filing as soon as they are available.