Wolfspeed plans US bankruptcy filing in deal reached with creditors

The struggling chip manufacturer said on Sunday, Wolfspeed plans to apply for bankruptcy in the United States, which will provide a restructuring agreement and fresh financing with creditors and plans to reduce the debt by about 70%, he said.

Wolfspeed triggered a number of financial difficulties that weakened the demand, deepening the economic uncertainty caused by the change of US trade policies.

Wolfspeed said in a statement, the creditors and Remesas Electronics’ re -structuring agreement reached with the US subsidiary, supported by some current creditors and will help reduce the debt of 4.6 billion dollars, he said.

Wolfspeed plans to get approval in its pre -packaged plan and then comes out of bankruptcy until the end of the third quarter of the 2025 calendar year.

In a pre -packaged bankruptcy, companies and creditors agree on a restructuring plan before applying for bankruptcy and the creditors vote for the plan.

The company plans to continue regular operations during the restructuring process.

As of March, there was a cash obligation of approximately $ 1.33 billion in cash and approximately $ 6.5 billion.

Last week, Bloomberg News informed the company’s plans to apply for a pre -packaged bankruptcy. The report said that Wolfspeed will be taken over by creditors, including Apollo Global Management.

In 2023, Wolfspeed announced a $ 1.25 billion -led debt finance, led by Apollo, and the option to increase the US expansion to $ 2 billion.

The company has been subjected to a series of leadership changes in the last few months and announced that it would reduce the senior leadership team by 30%in May, and in May, he appointed Industry Senior Senior Robert Feurle in March.

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