Wolfspeed Unveils Bankruptcy Strategy, Creditors Set to Gain Control
Wolfspeed, a semiconductor supplier based in Durham, North Carolina, announced plans to file for Chapter 11 bankruptcy in a move aimed at restructuring approximately $4.6 billion of its debt. Supported by creditors including Renesas and Apollo Global Management, the reorganization will attempt to convert debt into equity, although current shareholders may see significant losses. Despite facing ongoing financial struggles, including over $6 billion in debt obligations and missed production targets, Wolfspeed’s management believes this strategic step will position the company for future growth. The firm intends to continue operations during the bankruptcy process and anticipates emerging with a new board of directors and a solidified financial structure by the end of September.
