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Article says Apple supplier’s bankruptcy hits staffing firms

October 27, 2014

The bankruptcy of Apple-supplier GT Advanced Technologies Inc., a Merrimack, N.H.-based technology manufacturing firm, is hitting staffing firms. The Phoenix Business Journal reports GT’s Chapter 11 filing has left staffing firms and other contractors at its former Mesa, Ariz., plant in the lurch.

According to court records in the bankruptcy filing, at least two staffing firms are included on GT’s list of creditors holding the largest 30 unsecured claims. The two staffing suppliers on the list are Aerotek Inc. (owed more than $1.9 million) and Nesco Resource (owed almost $1.8 million).

GT had announced a deal last year with Apple Inc. to supply sapphire material, according to a company press release. However, GT filed for Chapter 11 bankruptcy protection earlier this month and the company last week announced a settlement agreement with Apple that includes a method for Apple to recover a $439 million pre-payment to GT and to shut operations its sapphire production sites in Mesa and Salem, Mass.

The closing of the Mesa operations included laying off 650 employees, the company reported.

GT, a publicly traded company, reported assets of $1.5 billion and liabilities of $1.3 billion, according to court records.