Wolfspeed is planning to file for bankruptcy as part of a restructuring agreement with creditors
The post Wolfspeed is planning to file for bankruptcy as part of a restructuring agreement with creditors appeared on BitcoinEthereumNews.com.
Shares of US semiconductor firm Wolfspeed plunged by 30% on Monday after the company revealed it is planning to sign for bankruptcy as part of a restructuring exercise backed by its top lenders. The company said it signed a restructuring deal with its top creditors to cut debt by about 70% or roughly $4.6 billion in bankruptcy filing, while it lines up new liquidity. The market reacts swiftly to Wolfspeed’s plan According to the Wall Street Journal, the company which makes carbide wafers and semiconductor components mostly in the US, indicated that it signed restructuring agreements with most of its senior and convertible noteholders and is also planning to ask creditors to approve the terms. Following the news, the market also responded swiftly as the chip supplier’s shares fell 12% in premarket trading. The company has lost more than 86% on a year to date basis following a 59% plunge on initial bankruptcy rumors on May 20. The company had recently had shifted its focus to manufacture semiconductors for drivetrains and electric vehicles (EV) charging systems. However, Wolfspeed’s operations collided with the tight US tariffs, coupled with a slowdown in EV demand which put pressure on its balance sheet. An unsustainable debt burden forced the company to pursue this route. “After evaluating potential options to strengthen our balance sheet and right-size our capital structure, we have decided to take this strategic step because we believe it will put Wolfspeed in the best position possible for the future.” CEO Robert Feurle. With a restructuring exercise on the pipeline, this could help the company achieve a cleaner balance sheet and a fresh runway, although equity holders face near-total dilution. Wolfspeed targets to get fresh funding According to the company, the restructuring exercise should see it unlock fresh financing amounting to $275 million.…
Filed under: News - @ June 23, 2025 10:26 pm