GT Advanced Technologies Inc (OTCMKTS:GTATQ) intends to sell its Hyperion business to a former employee, who has agreed to engage seventeen GTAT workers, if the sale receives approval from bankruptcy court. The acquirer, Neutron Therapeutics Inc., is run by Theodore Smick, who GT Advanced hired from November 2012 to February 2015 at its Danvers facility, where he assisted to advance the technology.
Hyperion technology involves a high-current and high-energy ion accelerator that is used in a variety of industries. Smick would associate with Ian Stewart Buckley, who possesses controlling stake in Buckley Systems Ltd., a firm with U.S. headquarters in Rowley. Buckley had delivered magnets for GT Advanced Hyperion tool before the bankruptcy filing.
The proposed sale would turn out to be the first good news for GT Advanced, as it continues to lose capital after filing for bankruptcy protection last year. Expressing the views on deal, the management stated that selling the Hyperion technology was extremely challenging. Of more than 100 parties who contacted, just two entities made an offer.
In August 2015, GT Advanced lost $8.9 million, totaling the paper loss to $394 million in nearly last ten months since it filed for bankruptcy protection on October 6, 2014. It reported that the monthly operating loss stood at $4.6 million, while almost $3 million were recorded as bankruptcy expenses.
Although, the company reported cash reserve of $120 million at the end of August 2015, it still owes massive amount to be paid to Apple and bondholders, and recorded a negative equity of as much as $319 million. So far, the company’s initiatives to liquidate over 2000 sapphire furnaces have largely been unsuccessful. As a result, the company was forced to reduce 40% of its total workforce. The biggest setback came when CEO Tom Gutierrez resigned in August 2015.
GT Advanced Technologies Inc (OTCMKTS:GTATQ) has been retracing all the gains made in the last month and the last trading session turned out to be just the latest display of the bearish power. The stock ended the last day of the week with a major loss of 9.97% with the volume of the day keeping low at 1.9 million against the daily average of 2.9 million. The volume pattern will take a backseat in this case as the stock has been breaking all supports and looks destined for a retest of the support area just below $0.20 levels.