Overview

• Wolfspeed is planning to file for Chapter 11 bankruptcy within weeks under a prepackaged plan supported by a majority of its creditors.
• The company carries $6.5 billion in debt, including a $575 million balloon payment due in May 2026, which it has been unable to refinance.
• Recent efforts to restructure debt out of court were rejected, with creditors like Apollo Global Management playing a key role in negotiations.
• Wolfspeed’s share price has collapsed by approximately 69% following reports of the impending bankruptcy, hitting an all-time low of under $1 per share.
• The company’s financial struggles jeopardize up to $750 million in CHIPS Act grants and $1 billion in tax credits tied to its semiconductor expansion projects.