Semiconductor company Wolfspeed to file for bankruptcy
The agreement, involving holders of more than 97% of its senior secured notes, Renesas Electronics Corporation's US subsidiary, and convertible debtholders representing more than 67% of outstanding convertible notes, aims to reduce the company's debt by approximately 70%, or $4.6bn, and cut annual cash interest payments by about 60%.
The RSA terms include $275m in new financing via second lien convertible notes, backstopped by certain convertible debtholders, and a $250m paydown of senior secured notes at 109.875%.
Additionally, $5.2bn of existing convertible notes and Renesas' loan will be exchanged for $500m in new notes and 95% of new common equity, subject to dilution.
Existing equity will be cancelled, with current shareholders receiving 3% or 5% of new common equity, subject to adjustments.
Unsecured creditors are expected to be paid in the ordinary course of business.
Wolfspeed CEO Robert Feurle said: '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.
'Wolfspeed has tremendous core strengths and great potential. We are a global leader in silicon carbide technology with an exceptional, purpose-built, fully automated 200mm manufacturing footprint, delivering cutting-edge products for our customers. A stronger financial foundation will enable us to focus acutely on innovation in rapidly scaling verticals undergoing electrification where quality, durability and efficiency matter most.'
Feurle added, 'As we move forward, we are grateful for the confidence and support of key lenders, who share our vision for the future and believe in our growth prospects. I also want to thank our incredibly talented team for their resilience and hard work, and our customers and partners for their ongoing support.'
Wolfspeed said it intends to solicit approval for a pre-packaged plan of reorganisation before filing for Chapter 11, expecting to complete the process by the end of the third quarter of 2025.
The company added that it will continue operating and serving customers during this period, with plans to pay vendors as usual through an All-Trade Motion.
Wolfspeed will also seek Bankruptcy Court approval to maintain employee compensation and benefits programmes.
Wolfspeed is advised by Latham & Watkins LLP and Hunton Andrews Kurth LLP as legal counsel, Perella Weinberg Partners as financial advisor, and FTI Consulting as restructuring advisor.
Paul, Weiss, Rifkind, Wharton & Garrison LLP and Moelis & Company represent the senior secured noteholders. Kirkland & Ellis LLP, PJT Partners, and BofA Securities advise Renesas Electronics Corporation, while Ropes & Gray LLP and Ducera Partners represent the convertible debtholders.
"Semiconductor company Wolfspeed to file for bankruptcy" was originally created and published by Verdict, a GlobalData owned brand.
The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Time Business News
25 minutes ago
- Time Business News
Pioneering Advances Reshape the Future of Live Cell Imaging
Live cell imaging is a technique that is used to study living cells in real time, using advanced imaging systems such as fluorescence or confocal microscopy. This allows researchers to inspect cellular processes such as movement, division and interaction without interrupting cells. The market for live cell imaging is increasing due to increasing demand to detect early disease, increase in research in cancer and neurobiology, progress in imaging technologies and more investment in cell-based drug search. Additionally, the growth of personal medical and stem cell research is further enhancing its adoption in both academic and drug fields. Key Growth Drivers and Opportunities Increasing Demand for Detection of Early Disease: The increasing demand for initial disease detection is increasing the increase in live cell imaging market, as this technique enables the real -time view of cellular behavior, which helps researchers to identify abnormalities in early stages. In the progression of the disease, initial insight, especially in cancer, neurodegenerative, and infectious diseases, allow rapid diagnosis and more effective treatment development. It is an accurate, real -time real -time cellular data requiring, which advancing healthcare and research institutes to adopt advanced live cell is imaging systems, promoting market expansion. Challenges Live cell imaging markets face boundaries such as high equipment and maintenance costs, which can restrict adoption between small research laboratories and institutions. Additionally, the complexity of the imaging system requires efficient personnel for operation and data analysis, which is a challenge in resource-limited settings. Live imaging can also affect cell viability over time due to phototoxicity and environmental disturbances, which can affect the result accuracy. Limited standardization and fertility on platforms obstruct the extensive clinical application. Innovation and Expansion An Innovative Live-Cell Imaging System Is Unveiled by a Durham Startup In February 2025, A live-cell imaging system that greatly increases speed and throughput for cell analysis has been introduced by Ramona, a Durham-based supplier of cutting-edge imaging equipment for the life sciences. Ramona wants to raise the bar for throughput speeds and standards using Vireo. Vireo can evaluate a 96-well plate with five channels in less than two minutes, according to the firm. After a year-long early access program for research institutes, the product will be commercially released. The Neuroscience Center and the Carolina Institute for Development Disabilities are two early users at the UNC School of Medicine. For real-time cell analysis, Nanolive introduces the LIVE Cell Death Assay In September 2022, The LIVE Cell Death Assay, a push-button, automated solution for label-free cell health, death, apoptosis, and necrosis profiling, is another revolutionary instrument in the field of cell analysis from Nanolive. First-in-class cytotoxicity analysis of dynamic label-free live cell data is offered by the LIVE Cell Death Assay (LCDA). The LCDA was created with cutting-edge machine learning techniques and has been trained to distinguish between necrosis and apoptosis in addition to living and dead cells. The LCDA is designed to be as easy to use as feasible; all it takes is one button click to begin the analysis. It provides 13 indicators linked to viability and death. Inventive Sparks, Expanding Markets Prominent players working in the live cell imaging market include Thermo Fisher Scientific Inc., Revilit., Nikon Corporation Healthcare, Zes Group and others. Investing in technology innovations involves AI-operated image analysis, super-resolution microscopy, and automation to improve productivity and accuracy, one of the main initiatives for live cell imaging businesses. Business will focus on enhancing your product line by creating affordable and intuitive solutions for a series of research uses, serving both large pharmaceutical firms and small academic laboratories. About Author: Prophecy is a specialized market research, analytics, marketing and business strategy, and solutions company that offer strategic and tactical support to clients for making well-informed business decisions and to identify and achieve high value opportunities in the target business area. Also, we help our client to address business challenges and provide best possible solutions to overcome them and transform their business. TIME BUSINESS NEWS
CNBC
25 minutes ago
- CNBC
China plans subsidy vouchers for seniors to ease strain on its aging population, drive consumption
China is planning to offer subsidy coupons to seniors in a rare use of direct fiscal support as Beijing seeks to ease the financial strain on its aging population and drive consumption of elderly-care services. The allowances will be paid monthly in the form of electronic coupons to cover part of the costs for seniors' care services, according to a joint statement issued by the ministry of civil affairs and ministry of finance on Wednesday. Chinese policymakers have avoided direct cash handouts similar to what the U.S. and Hong Kong offered during the pandemic to stimulate spending, even as they step up efforts to support employment and improve social welfare. "The financial burden that elderly care generates for Chinse households ... is one of major current constraints to reducing precautionary savings and boosting domestic consumption," said Alfredo Montufar-Helu, a Beijing-based advisor to multinational enterprises. Seniors will be assessed for their physical disability, and only those evaluated as "moderately, severely or completely disabled" will be allowed to claim such subsidies, according to the official statement. The allowances are currently set between 500 yuan and 800 yuan a month and can be used to pay for a portion of the costs for certain senior-care services, such as meal and bathing assistance, rehabilitation and day care. Details of the plan may be further "optimized" as authorities will run a pilot in select cities this month before a nationwide roll-out later this year. The scheme will last for 12 months. The measures could incentivize the adoption of such senior care services and ease the "hefty elderly care burden" for family members, said Tianchen Xu, senior economist at Economist Intelligence Unit. Echoing that view, Lynn Song, chief economist for Greater China at ING, said that while "strengthening of the social safety net has been one of the main goals in order to better unlock consumption, these measures can be interpreted as steps in this direction." As China's population ages and middle-class consumers facing job uncertainty scale back spending, the so-called silver economy — a sector that provides goods and services for people over 50 — has been on the rise, with more businesses targeting seniors who have accumulated sufficient retirement funds. "It's crucial for the government to keep pushing forward with reforms and strategies that tackle the deeper structural [supply-demand] imbalances," Montufar-Helu said. The fiscal aid will be primarily funded by the central government, with local authorities contributing a smaller share, according to the statement Wednesday. "Elder care is a key component of the country's broader services consumption ... the initiative is designed to foster new growth drivers and better align economic development with social welfare," the statement reads, translated by CNBC. Economists have ramped up calls for Beijing to prioritize policies aimed at strengthening the country's social safety net to tackle the aging population, high youth jobless rate and tepid domestic consumption. "Mounting demographic and economic pressures are forcing Beijing to highlight the social policy agenda in the upcoming 15th five-year plan," Eurasia Group said in a note Thursday. "Bolstering the social safety net, especially through changes to pensions and healthcare, is high on the agenda to adapt to a rapidly graying society," Eurasia Group said in a note Thursday. About 22% of China's population was aged 60 or older at the end of 2024, the statement said, up from 18.7% in 2020. The population aged 65 years and above in China reached 216.8 million in 2023, accounting for 15% of the total population.
Bloomberg
25 minutes ago
- Bloomberg
Philippine Ambassador to the US on Trade Deal
Philippine Ambassador to the US Jose Manuel Romualdez discusses his outlook after President Trump announced a trade deal with Philippine that will impose 19% tariff on imports. He speaks with David Ingles and Yvonne Man on "Bloomberg: the China Show." (Source: Bloomberg)
