- Wolfspeed, Inc. (WOLF, Financial) initiates a pre-packaged restructuring process with strong lender support.
- The company aims to emerge from restructuring by Q3 2025, reducing debt by approximately 70%.
- Wolfspeed holds $1.3 billion in cash to maintain operations and vendor payments during the process.
Wolfspeed, Inc. (WOLF), a leader in silicon carbide technologies, has announced the initiation of a pre-packaged restructuring process. This strategic move is supported by key lenders, including over 97% of its senior secured noteholders and more than 67% of its convertible noteholders. The process aims to reduce Wolfspeed's overall debt by approximately 70%, amounting to a reduction of $4.6 billion and significantly decreasing annual cash interest payments by 60%.
In a proactive step to strengthen its capital structure, Wolfspeed has voluntarily filed for reorganization under Chapter 11 of the U.S. Bankruptcy Code. The company expects to finalize the restructuring by the end of the third quarter of 2025. Despite these proceedings, Wolfspeed continues its regular operations, delivering silicon carbide materials to customers and compensating vendors as usual.
CEO Robert Feurle stated the restructuring will enable Wolfspeed to accelerate its growth and maintain its leadership in the silicon carbide market. With a robust financial foundation, the company is poised to focus on strategic priorities and meet the rising demands of the semiconductor industry.
In support of this restructuring, Wolfspeed has filed multiple motions to ensure seamless operations, including maintaining employee compensation and vendor payments. The company expects court approval for these motions shortly.
