Overview
- Wolfspeed filed for a prepackaged Chapter 11 in the Southern District of Texas backed by creditors including Renesas and Apollo Global, unlocking $275 million in debtor-in-possession financing.
- The company entered bankruptcy with $1.3 billion in cash and expects to reduce about $4.6 billion of debt, or roughly 70% of its total, upon emergence.
- Annual cash interest expenses are projected to fall by approximately 60%, easing its heavy debt-service burden.
- Wolfspeed will continue delivering silicon carbide materials to customers and paying vendors in the ordinary course throughout the restructuring.
- Shares surged over 60% in after-hours trading on the filing, reflecting investor optimism about the swift debt-relief plan.