US EditionWolfspeed Files for Bankruptcy to Cut $4.6B in Debt
- Wolfspeed, a Durham North Carolina chipmaker, filed for Chapter 11 bankruptcy on Monday to restructure its $6.7 billion debt load.
- The filing follows a restructuring agreement with key lenders including Renesas, aiming to cut nearly 70% of debt due to weakening demand and a $575 million debt payment upcoming.
- Wolfspeed intends to continue regular business activities during its restructuring, including paying vendors and fulfilling orders, with plans to complete the bankruptcy process and exit Chapter 11 before the end of September.
- Shares ended Monday at 40 cents and surged to over 80 cents Tuesday morning following the Chapter 11 bankruptcy announcement, with CEO Robert Feurle emphasizing the company’s commitment to advancing its restructuring efforts to bolster its financial foundation.
- The bankruptcy is part of Wolfspeed's strategic shift focusing on more efficient plants and shedding legacy units, implying a significant reorganization aimed at long-term financial stability and growth.
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Wolfspeed files for bankruptcy in effort to turn around NC chipmaker
The 38-year-old Durham, North Carolina, semiconductor supplier Wolfspeed filed for Chapter 11 bankruptcy Monday, officially starting a reorganization the company says will allow it to shed billions in debt. The filing in the Southern District of ...
Wolfspeed files for bankruptcy to cut $4.6B in debt
Durham-based Wolfspeed has filed for Chapter 11 bankruptcy to cut $4.6 billion in debt while continuing operations. The move follows overbuilding amid slower-than-expected EV demand. Its $7.6 billion in assets exceed $6.7 billion in liabilities. Creditors like Microsoft and Renesas are major stakeholders. Stock rose post-filing.
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