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It aims to slash roughly $4.6 billion of debt to strengthen its balance sheet for a planned Q3 emergence.

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Overview

  • The prepackaged Chapter 11 filing follows a restructuring support agreement with creditors including Apollo Global Management and Renesas ElectronicsUS unit.
  • Under the plan, Wolfspeed will cut about 70% of its $6.5 billion debt load and reduce annual cash interest payments by around 60%.
  • Existing creditors will back $275 million in new financing to support operations through the bankruptcy process.
  • Current equity holders are set to receive just 3–5% of the company’s new common shares once the reorganization is complete.
  • The chipmaker expects to continue regular operations and emerge from bankruptcy by the end of the third quarter of 2025.

Articles 5

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Benzinga1w
What's Going On With Wolfspeed Shares Today? - Wolfspeed (NYSE:WOLF)
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The Street1w
Struggling EV semiconductor company files for bankruptcy
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Investopedia1w
Struggling Chipmaker Wolfspeed Files for Bankruptcy as Debt Burden Mounts
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The Register2w
Wolfspeed to file for Chapter 11 in deal cutting 70% of debt
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CNA2w
Wolfspeed plans US bankruptcy filing in deal reached with creditors