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Debt holders are in first position in bankruptcy reorganizations. They may see part if not all of their money, assuming the company returns to profitability. Either way, equity holders are typically wiped out.

YES, YES, there are lots of details. Which is why I said... "The simple version is..."
 
Sorry to say this, but yep, pretty much.



You'll have to keep an eye on the case to know for sure, but I wouldn't be hopeful. There's a chance the company could be bought and taken private, and no new stock issued. Or, creditors will get a debt for equity swap, and they will become the "new" equity holders with newly issued stock, and the stock you have now will be invalidated and worthless, or traded in for "new" at an extremely low value.

As an equity holder, maybe you'll get pennies on the dollar, or you might get nothing. Unfortunately, history does not bode well for stockholders on this. This is one of those risks investment managers warn people about when they trade in stocks (though admittedly, they usually do it in teeny tiny print at the bottom of things you sign).

You are making wild claims here. In Chapter 11 bankruptcy, the stock is delisted and sold OTC. The price plummets because it is nearly impossible to value a company or a share when a company is in bankruptcy proceedings. If the company moves from Chapter 11 to Chapter 7, then, and only then, are stockholders at risk of having their equity completely wiped out. Secured creditors will be given priority, stockholders are at the bottom of the list in Chapter 7.

Please refrain from offering investment or legal advice.

Source: lawyer, investor
 
A small part of me can't help to think GT Advance maybe wasn't able to produce the yield and quality expected by Apple and this is the reason it didn't make it into the iPhone6.

Is this an example of bringing manufacturing back in the US gone wrong??

Considering that "ion strengthened glass" is also made in the USA, and has been since the original iPhone, I would say no. Corning's USA plant for Gorilla Glass is in Harrodsburg, Kentucky.
 
Fair enough. But one example hardly equates to "and everyone (almost) gets paid back over time."

You are assuming too much. The idea is to restructure a business and allow it to pay its debt.

I don't remember saying that it was this magical thing where everyone ends up happy.

In a perfect world everyone would be paid back.... Unfortunately this is no perfect world. Don't be such a downer.
 
Man, I can't wait for an iPhone with Sapphire display and Liquidmetal body. Hope both companies still work with Apple in the future.
 
Thanks. Can technically AAPL use that amount to get the company? $500M of debt, $111M market cap (GTAT).

Again, the market value of GT's stock is completely meaningless now. As for the debtors, Apple will stand in line with the others. The court decides who gets what and when. It's always possible that Apple could petition the court to buy GT out of bankruptcy, and use their existing debt to leverage the deal, but this also means Apple assumes all of GT's debt obligations. Apple could afford it, no doubt, but it isn't at all clear now whether it would be a good business deal for Apple.
 
I think it's a matter of semantics here.

My guess is Apple already made the decision to go with Sapphire, and production had started. GT makes the rough Sapphire covers, and that sapphire would have to be polished down, and that curve on the side of the displays in the iPhone 6/Plus would have to be made, by contracted assemblers and finishers, probably at Foxconn.

The assemblers then started seeing yield and quality issues and probably had trouble grinding down the edges to make that curve, without cracking or shattering a whole lot of the sapphire covers.

To solve that issue with either a reformulation of the sapphire cover, or a different finishing process, would've taken "weeks," and Apple didn't want to wait weeks. Searching for options, Tim Cook places a call to Corning, who maybe rubs it in and then says that they can start rolling "ion strengthened glass" (which could be Gorilla Glass 3) immediately. For a price.

End result? Apple says "sorry, maybe next time" to GT, and places a huge order with Corning for the 6/Plus. Production continues with only a minor hiccup, and GT is left holding the bag.

Again, this is all speculation, but I think this is how it went down, and how the "weeks away" rumor started.

Maybe. I'm still skeptical Apple would be able to switch from sapphire to glass that quickly. I believe there were also rumors that just the 6 Plus would see sapphire display. So perhaps the plan was to use glass but if they got lucky with sapphire production and it was ready to go use it on the 6 Plus first and then if that worked out add it to the smaller model next year.
 
Hopefully GT advance shouldnow be a top tip for investment as their stock could skyrocket next year with apple watch and next iPhone. You never know.

Their stock is a completely worthless investment. Equity holders are normally wiped out in any bankruptcy filing.
 
More like they didn't meet a deadline. Even if your a independent contractor, if you miss a deadline, that usually means you miss the pay.

As others probably have pointed out, an earlier article said the glass was shipped to China to be worked so that it could be used in the final products, but the Chinese company (ies?) was(were?) not able to machine (rounding the edges and corners) it without damaging it, resulting in TONS of the glass being returned to the manufacturer / producer.
 
Again, the market value of GT's stock is completely meaningless now. As for the debtors, Apple will stand in line with the others. The court decides who gets what and when. It's always possible that Apple could petition the court to buy GT out of bankruptcy, and use their existing debt to leverage the deal, but this also means Apple assumes all of GT's debt obligations. Apple could afford it, no doubt, but it isn't at all clear now whether it would be a good business deal for Apple.

Nobody should be taking anything this poster says seriously.

You have demonstrated a misunderstanding of Chapter 11 bankruptcy, debt, equity, stock valuation and more. Debtor-in-possession financing will likely help GTAT restructure its debt, exit bankruptcy, and it will continue operations the whole time. Please refrain from opining on topics such as investment or legal proceedings.

Source: lawyer, investor
 
YES, YES, there are lots of details. Which is why I said... "The simple version is..."

I wanted to clarify this point since so many posters don't seem to get that GT stockholders are likely to get zero. That isn't a mere detail, and deserves to be part of even the simplest version.
 
You are making wild claims here. In Chapter 11 bankruptcy, the stock is delisted and sold OTC. The price plummets because it is nearly impossible to value a company or a share when a company is in bankruptcy proceedings. If the company moves from Chapter 11 to Chapter 7, then, and only then, are stockholders at risk of having their equity completely wiped out. Secured creditors will be given priority, stockholders are at the bottom of the list in Chapter 7.

Please refrain from offering investment or legal advice.

Source: lawyer, investor

Perhaps you should do the same, unless you're seeking to represent investors on this thread.

I think in any case, the sound advice to anyone with GT Advanced shares is to consult a financial advisor or legal representative that they trust, and not some guys on the internet.
 
Perhaps you should do the same, unless you're seeking to represent investors on this thread.

I think in any case, the sound advice to anyone with GT Advanced shares is to consult a financial advisor or legal representative that they trust, and not some guys on the internet.

I am not offering legal or investment advice, nor am I offering an opinion on what current stockholders should do. I am challenging your misunderstanding and errors of fact.

Yes, people should not be getting their investment or legal advice from anonymous posters in the Macrumors forums. This principle is represented wonderfully by many posts in this thread.
 
not able to machine (rounding the edges and corners) it without damaging it, resulting in TONS of the glass being returned to the manufacturer / producer.
Yeah, I don't buy that for a second. You don't ship tons of material without having all the design and production studies in hand. Someone is going to eat that cost and nobody is going out on that limb without studies that show it can be done, how, and how much each unit will cost.
 
You are making wild claims here. In Chapter 11 bankruptcy, the stock is delisted and sold OTC. The price plummets because it is nearly impossible to value a company or a share when a company is in bankruptcy proceedings. If the company moves from Chapter 11 to Chapter 7, then, and only then, are stockholders at risk of having their equity completely wiped out. Secured creditors will be given priority, stockholders are at the bottom of the list in Chapter 7.

Please refrain from offering investment or legal advice.

Source: lawyer, investor

I have yet to see a company emerge from Chapter 11 with the stockholders remaining whole, or even close. The nearest I can remember is when K-Mart in Chapter 11 merged with Sears. The stockholders got something (and not much, as I recall) because K-Mart was merging with another public company. A recent example of current stockholders being wiped out in Chapter 11 is GM. A new holding company was formed and new stock sold. You can (I believe) still buy stock in the old GM for pennies, assuming you need wallpaper.
 
Nobody should be taking anything this poster says seriously.

You have demonstrated a misunderstanding of Chapter 11 bankruptcy, debt, equity, stock valuation and more. Debtor-in-possession financing will likely help GTAT restructure its debt, exit bankruptcy, and it will continue operations the whole time. Please refrain from opining on topics such as investment or legal proceedings.

Source: lawyer, investor

Name a company where the stockholders were made whole out of Chapter 11.

Source: investor, 40+ years.
 
I am not offering legal or investment advice, nor am I offering an opinion on what current stockholders should do. I am challenging your misunderstanding and errors of fact.

I've merely informed people that they need to keep an eye on the case and not be too optimistic of being made whole. And now, that they need to consult a financial advisor or legal representative to discuss their options. I stand by those statements.


Best of luck getting your money back.
 
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