GT Advanced Technologies (GTAT) filed for Chapter 11 bankruptcy earlier this month, effectively ending production of sapphire crystal glass needed for Apple's (AAPL) iSight camera and he upcoming Apple Watch - slated for 2015 release.

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The news came as a surprise to many, given the advanced payment by Apple for the sapphire glass, but somewhere along the line the partnership between the two companies turned sour, and GT ended up going bankrupt.

In order to refund Apple's payment, GT will sell 2,039 sapphire furnaces used for creating sapphire glass. The proceeds from the furnace sale are expected to be enough for the company to pay back $439 million debt GT owes Apple.

Apple has been silent on GT's bankruptcy to public, making sure all filings are kept secret. This has annoyed various lawyers and officials who want to know all the details between Apple and GT, but Apple has various non-disclosure agreements to keep everything under wraps.

The Arizona plant has been shut down and hundreds of jobs have been lost. There is no word on whether this plant will be reopened under new ownership, or if Apple might step in to run the plant, while they look for an investor group to take it over.

Apple needs sapphire crystal glass, and with the new emphasis on American manufacturing, they cannot afford to go to Foxconn or any other Chinese manufacturer, which have limited experience with sapphire.

GT's bankruptcy comes at an inconvenient time for Apple, with the launch of the Apple Watch. This is a product that needs to be constantly in stock, especially with the rather mixed reaction, or customers might start to look elsewhere for their wearable purchase.

TagsGT, sapphire crystal glass, Apple Watch, sapphire furnaces, American industry