Wolfspeed, Inc. voluntarily filed petitions for reorganization under Chapter 11 of the U.S. Bankruptcy Code on June 30, 2025. This action is the next step to implement its previously announced Restructuring Support Agreement (RSA) with key lenders.
The company expects to reduce its overall debt by approximately 70%, representing a reduction of about $4.6 billion, and lower its annual cash interest payments by roughly 60% upon emergence. Wolfspeed anticipates moving through the process expeditiously and emerging by the end of the third calendar quarter of 2025.
Wolfspeed stated it will continue to operate as usual throughout the process, delivering silicon carbide materials and devices to customers and paying vendors in the ordinary course. The company had approximately $1.3 billion of cash as of the third quarter of fiscal 2025, providing near-term liquidity.
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