Wolfspeed announced on June 23, 2025, that it has reached a Restructuring Support Agreement (RSA) with key lenders, including holders of over 97% of its senior secured notes and over 67% of its convertible notes. The company plans to file for Chapter 11 reorganization in the near future.
This agreement is expected to substantially de-lever Wolfspeed's capital structure, reducing its overall funded debt by approximately 70%, or about $4.6 billion. It is also projected to lower the company's annual cash interest payments by roughly 60% upon emergence.
Renesas Electronics Corporation, a key partner, expects to record a loss of approximately 250 billion yen on its deposited receivables as a result of this restructuring. Renesas's $2.062 billion deposit will be converted into convertible notes, common stock, and warrants issued by Wolfspeed.
The content on BeyondSPX is for informational purposes only and should not be construed as financial or investment advice. We are not financial advisors. Consult with a qualified professional before making any investment decisions. Any actions you take based on information from this site are solely at your own risk.