Wolfspeed Faces Pivotal Bankruptcy Court Hearing

A critical juncture arrives today for semiconductor manufacturer Wolfspeed, as a U.S. bankruptcy court in Texas convenes to review the company’s Chapter 11 restructuring proposal. This hearing represents the culmination of an expedited financial overhaul that commenced with a voluntary bankruptcy filing on June 30.

Central to the proceedings is a pre-packaged plan designed to fundamentally reshape the company’s capital framework. The proposal aims to slash Wolfspeed’s total debt by approximately $4.6 billion, representing a reduction of nearly 70%. This dramatic cut is projected to decrease annual interest expenses by about 60%.

The restructuring initiative received overwhelming creditor support even before its formal submission, with holders of more than 97% of the senior secured bonds endorsing the agreement.

Simultaneously, Read more...