Overview

• The prepackaged Chapter 11 filing follows a restructuring support agreement with creditors including Apollo Global Management and Renesas Electronics’ US unit.
• Under the plan, Wolfspeed will cut about 70% of its $6.5 billion debt load and reduce annual cash interest payments by around 60%.
• Existing creditors will back $275 million in new financing to support operations through the bankruptcy process.
• Current equity holders are set to receive just 3–5% of the company’s new common shares once the reorganization is complete.
• The chipmaker expects to continue regular operations and emerge from bankruptcy by the end of the third quarter of 2025.