Another GT Advanced Exec Revealed to Have Sold Shares Before Bankruptcy

Apple’s sapphire manufacturing partner GT Advanced has had a hard time meeting the milestones it agreed to, but executives have profited off the deal by selling their stocks at high prices, as investors were positive that there would be a sapphire iPhone this year.

GT advanced

The Wall Street Journal’s Daisuke Wakabayashi has already uncovered how GT Advanced’s CEO Thomas Gutierrez set up a pre-arranged plan to cash in by selling GTAT stock before the Apple media event in September.

As it turns out, it wasn’t just him: another high-profile executive, Daniel Squiller, GT Advanced’s chief operating officer and the point man at the Mesa facility, did the same. After seeing that GT wouldn’t meet the technical and financial milestones it agreed to with Apple, Squiller set up a plan to sell shares and cashed in almost $2 million before GT Advanced filed for Chapter 11 bankruptcy protection last week.

We all know that Apple had agreed to loan GT Advanced $578 million, as well as buying the Mesa plant and establishing it as the company’s exclusive sapphire manufacturer. The loan was scheduled to arrive in multiple instalments as GTA needed to meet certain criteria along the way.

The third payment, $103 million, was due in February — remember that February report of the Mesa plant preparing for a production onslaught? — but it didn’t come until April. The last instalment of $139 million was withheld by Apple despite being due in April, GTA’s filings reveal.

GT Advanced execs have sold shares at prices ranging from $15 to almost $21 per share. Since the company announced its bankruptcy, shares have dropped more than 90%. They traded at 43¢ today.

Technology enthusiast, rocker, biker and writer of iPhoneinCanada.ca. Follow me on Twitter or contact me via email: istvan@iphoneincanada.ca

  • aaloo

    These crooks took the apple loan, sold their shares for millions and then declared bankruptcy, leaving innocent investors in the dark. And now they want to sue apple and exit the contract.

  • Yup sounds about right.

  • speedracer99

    Isn’t that insider trading? How is what they did legal?

  • mexiapolis

    Horrible reporting. You didn’t mention a major detail from the original story:
    “In a filing, GT said Gutierrez’s share sale was part of a pre-arranged plan put in place on March 14, 2014. But there was no obvious pattern to his sales.”

    These trades were established long before even the iPhone 6 announcement and certainly before any release date was known.

  • I don’t think it takes a genius to figure out these guys cashed out before the company went bankrupt. Whether it was planned or not these guys still sold their stock when they knew the iPhone 6 is coming. Everyone knew the iPhone six was coming in the fall.

  • Mozbius

    I may be wrong but it sure looks like they gained from a loophole! They
    knew at least how long it would take for them to be able to produce the
    kind of amount of saphire that Apple ordered. With this knowledge GT
    Advanced could easily approximate through an educated guess a ball park
    of when the iPhone could be ready for sale. From there they simply had
    to schedule their share sale before that window. Bingo! They “scheduled”
    a sale on a time period that they didn’t really know and therefore it
    is not an insider trade.

    Execs make a kill while regular workforce employees bite the dust. Capitalism at its best.