GT Advanced begins wind-down with termination of 740 facility workers

By Kali Hays

New York, Oct. 22 – GT Advanced Technologies Inc. issued Worker Adjustment and Retraining Notification Act notices to 740 employees on Oct. 16, a move that will cost it approximately $5.6 million in termination benefits in the fourth quarter of this year, according to an 8-K filed Wednesday with the Securities and Exchange Commission.

The notices, given to employees of a production facility in Mesa, Ariz., under GT’s plans to wind down its operations as part of its Chapter 11 reorganization, made termination effective immediately.

Employers are required to give at least 60 days advance notice of plant closings or expected layoffs to employees under the WARN Act.

According to the 8-K, about 70 employees will remain working at the facility to complete the wind-down.

GT said that it expects to incur further charges related to asset impairments, inventory and facilities” but is unable “to make a good faith estimate of these charges.”

As previously reported, the company claimed the operational wind-down is the only way to stop mounting losses and allow it to refocus resources on the operation of its core business of selling sapphire furnaces and other products.

The process is designed to allow for the operations to be wound down by Dec. 31.

Merrimack, N.H.-based GT Advanced Technologies is a provider of equipment and services that support the growth of the solar and LED industries. The company filed bankruptcy on Oct. 6 under Chapter 11 case number 14-11916.

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