GT Advanced Technologies, which makes Sapphire Glass, is filing for bankruptcy after Apple turned its back on the outfit. Investors had thought that Sapphire would be in Apple's newest iPhone, but it wasn’t and Jobs’ Mob claimed it was never going to be in the first place.

GT Advanced had signed a multiyear agreement with Apple last November to supply the company with sapphire material. That agreement included a $578 million prepayment, which GT Advanced will have to pay back to Apple over a five-year period starting in 2015.
Apple's Watch, which is set to be released next year, will include a sapphire display. But apparently it was suggested on bigger objects, like an iPhone, sapphire glass not necessarily any more durable when dropped than the current Gorilla Glass. Apple insists that it was never considered for the iPhone, but it seems odd that you give a $578 million pre-payment for just the watch.

GT Advanced Technologies has filed under chapter 11 of the Bankruptcy Code in the United States Bankruptcy Court for the District of New Hampshire. GT 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 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.

Tom Gutierrez, president and chief executive officer of GT said the company has a strong and fundamentally sound underlying business and it did not mean it was going out of business.