Wolfspeed plans to file bankruptcy to restructure debt and secure new financing

From Yahoo Finance: 2025-06-22 22:10:00

Wolfspeed, listed as WOLF on the stock market, plans to file for bankruptcy in the US to restructure its debt and secure fresh financing. The chipmaker faced financial challenges due to economic uncertainty and weakening demand. A restructuring agreement with creditors and Renesas Electronics’ US subsidiary aims to reduce debt by $4.6 billion, backed by $275 million in new financing.

The company aims to emerge from bankruptcy by the end of the third quarter of 2025. In a prepackaged bankruptcy, a reorganization plan is agreed upon before filing, with creditors voting on the plan. Wolfspeed intends to continue its regular operations during the restructuring process. As of March, it had $1.33 billion in cash and $6.5 billion in debt obligations.

Last week, reports surfaced regarding Wolfspeed’s plans for prepackaged bankruptcy. Creditors, including Apollo Global Management, were set to take over the company. In 2023, Wolfspeed secured $1.25 billion in debt financing, led by Apollo, with the potential to increase to $2 billion for US expansion. The company has made leadership changes, appointing Robert Feurle as CEO and David Emerson as COO.

The restructuring agreement with creditors and Renesas Electronics’ US subsidiary aims to reduce Wolfspeed’s debt by $4.6 billion. The company plans to file for bankruptcy, secure fresh financing, and emerge from bankruptcy by the end of the third quarter of 2025. Operations are set to continue during the restructuring process.



Read more at Yahoo Finance: Wolfspeed plans US bankruptcy filing in deal reached with creditors