Judge Boroff also provided a colorful analogy for the dispute between Apple and its would-be supplier. "I’m seeing what looks incredibly like a construction suit, where a homeowner says to the contractor, 'It didn't come out the way I wanted to,' and the contractor says, 'Well, it would have come out that way if you didn't continue to change the specifications.'"
APPLE: I'm Apple. I buy the building I let GTAT use, I contract with GTAT to build sapphire covers for my new products, I lend GTAT $500m to buy the equipment to produce the sapphire for my new products, and now I don't have to buy the product I kept GTAT in business to make for me.
That was shorts not willing to buy back at any price. They will continue until it becomes clear GTAT will survive and the stock will continue trading.
Gee, what a surprise! GTAT is trading today and it's up. What happened to all those geniuses the last few days, including the dolt from Forbes who said it would be 0.00 by yesterday?
This will move in the right direction.
It is on the Chapter 11 filings they submitted to the NH court. You can find all this on GTAT's web site.
Also notice that Nixon Peabody is the law firm representing them in the New Hampshire. NP is one of the top law firms in the world. GTAT is not going down without an enormous fight. This will definitely get interesting.
I do hate to bring this up at this time, but, GTAT might just have one of the finest and most competent boards of directors in the country. So if I'm doing anything over the next week or two, I'm watching this chess match VERY closely. Something quite unexpected is likely to happen; the negative news already happened, now, let's see how they save this company. And it is worth saving since it is one of the major solar foundrys in the world, with a large IP portfolio, all of the top solar players as customers and an upgrade cycle about to begin.
Good post Rob. An avalanche is building in JRJC's revenue, however the stock may not explode again until that revenue is announced. In the meantime the NASDAQ looks pretty sick - it did a quadruple top and has been rolling over for a few weeks now. You may be right about Nov and Dec.
What are you going to be telling people when it opens tomorrow, and the next day and the next day? Imbecile.
More misinformation this morning. Stock will continue trading for at least another month as GTAT will request a hearing. This whole situation might be resolved in NH this week and it won't be negative from this point.
I don't know the outcome of this whole thing but it seems that GTAT filed for bankruptcy to make a point. It does not want to go bankrupt, it is having big financial difficulties, but something more is in the background.
Also, the solar side of their business is set to come alive even with falling oil prices - solar is a world wide reality. Not the least to stop funding terrorism with all the oil money flowing into the mideast.
GTAT is a core foundry for the solar industry - we'd be foolish to let it go belly up. There is more here.
Chuck Jones posted this on Forbes this am in the article "GTAT going to 0.00:"
"It is not looking good for GT Advanced Technologies (symbol: GTAT) as it is down $0.35 to $0.46 this morning. As I wrote last night the NASDAQ has started the process to delist the shares and stop trading at the end of Tuesday. Upon digging into the bankruptcy filings GTAT doesn’t own the manufacturing site (Apple does) or the Advanced Sapphire Furnaces (ASFs) as they look to be pledged for the $439 million Apple had pre-paid GTAT for sapphire glass."
Seems to me he doesn't understand the process. Anyone else see the NASDAQ rule posted above differently?
GTAT has 4 days from when they receive a delisting notice to post it. No posting so far. Then expect them to ask for a hearing, which will probably be scheduled just after Thanksgiving.
Here's the whole NASDAQ rule:
When a company announces that it has filed for bankruptcy protection, or that filing is imminent, NASDAQ will impose a news dissemination halt. Generally, trading will be allowed to resume 30 minutes following release of the news. Shortly following the resumption of trading, NASDAQ will issue a delisting letter to the company, which will indicate that the company will be delisted in nine calendar days from the date of the determination letter unless it requests a hearing within seven calendar days. The company is required to publicly disclose that it has received this letter as soon as possible, but in no event later than four business days from receipt of the letter. If the company requests a hearing, trading will usually continue until the Panel issues its determination. Hearings for bankrupt companies are generally scheduled within 25-30 days of the date of NASDAQ's delisting letter.
GTAT also has 4 days from when they receive the notice to post it - no posting so far. Expect GTAT to continue trading.
"If the company requests a hearing, trading will usually continue until the Panel issues its determination. Hearings for bankrupt companies are generally scheduled within 25-30 days of the date of NASDAQ's delisting letter"
Can't imagine GTAT won't request a hearing, in which case GTAT will trade at a minimum well into November.
"If the company requests a hearing, trading will usually continue until the Panel issues its determination. Hearings for bankrupt companies are generally scheduled within 25-30 days of the date of NASDAQ's delisting letter."