logo
Semiconductor company Wolfspeed to file for bankruptcy

Semiconductor company Wolfspeed to file for bankruptcy

Yahoo23-06-2025
Wolfspeed, a US-based semiconductor company known for its silicon carbide technology, has announced plans to file voluntary petitions for reorganisation under Chapter 11 of the US Bankruptcy Code as part of a Restructuring Support Agreement (RSA) with key lenders.
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.
Orange background

Try Our AI Features

Explore what Daily8 AI can do for you:

Comments

No comments yet...

Related Articles

Stock market today: S&P 500 ekes out new record amid wave of earnings, trade updates
Stock market today: S&P 500 ekes out new record amid wave of earnings, trade updates

Yahoo

time15 minutes ago

  • Yahoo

Stock market today: S&P 500 ekes out new record amid wave of earnings, trade updates

US stocks closed mixed Tuesday, but the benchmark S&P 500 (^GSPC) was able to eke out a new record as Wall Street digested a new batch of earnings, including a tariff warning from General Motors (GM), while also weighing the latest trade developments. The S&P closed just above the flat line to secure the fresh all-time high of 6,309.62. The Nasdaq Composite (^IXIC) dropped around 0.4% ahead of Big Tech earnings, while the Dow Jones Industrial Average (^DJI) rose 0.4%. Markets bounced off earlier losses after President Trump announced a new trade deal with the Philippines, in a potential sign that more positive developments on the trade front could be on the horizon. So far, the market has proven resilient in the face of tariff uncertainty, with the S&P 500 and Nasdaq hitting fresh record closes on Monday. Earnings season has been largely upbeat, buoying stocks and sentiment — though the market is now weighing how far the recent rally can run. Earnings results from a wave of companies on Tuesday were mixed. The stocks of General Motors (GM), Philip Morris (PM), RTX (RTX), and Lockheed Martin (LMT) sank after their quarterly results disappointed Wall Street. General Motors reported that its core profit sank over 32% in the second quarter as tariff headwinds sapped $1.1 billion from its results. The Big Three automaker warned the hit would be deeper in the current quarter, providing food for thought to investors assessing the impact of President Trump's trade policy. Read more: Full earnings coverage in our live blog At the same time, Wall Street awaits second-quarter results from "Magnificent Seven" members Alphabet (GOOGL, GOOG) and Tesla (TSLA) on Wednesday. As the valuation of large-cap tech stocks soars, investors are hoping for reassurance that the hype around AI is more than just buzz. Meanwhile, the clock is ticking on trade. Trump's August 1 deadline to strike a deal or raise tariffs is fast approaching but progress remains elusive. Talks with India are reportedly deadlocked, while negotiations with the European Union continue to stall. There is some movement on China. Treasury Secretary Scott Bessent said he'll meet his Chinese counterpart next week in Stockholm with discussions expected to include a possible extension of the August 12 deadline to avoid sharply higher tariffs. Read more: The latest on Trump's tariffs LIVE 21 updates

Acumentrics Partners with Vic Myers Associates to Expand Market Presence in the Western United States
Acumentrics Partners with Vic Myers Associates to Expand Market Presence in the Western United States

Yahoo

time15 minutes ago

  • Yahoo

Acumentrics Partners with Vic Myers Associates to Expand Market Presence in the Western United States

WALPOLE, Mass., July 22, 2025--(BUSINESS WIRE)--Acumentrics, a leader in reliable, rugged power solutions for mission-critical applications, is proud to announce a new strategic partnership with Vic Myers Associates (VMA), a manufacturers' representative firm with deep technical roots and decades of experience in complex electronic systems. VMA will serve as Acumentrics' regional representative across New Mexico, Arizona, Utah, Colorado, Nevada, Idaho, Montana, and Wyoming, further strengthening Acumentrics' support network and market presence across the Western U.S. Founded in 1978, Vic Myers Associates has earned a reputation as a trusted technical sales partner, specializing in advanced solutions for the military, aerospace, space, test & measurement, and industrial markets. Their team of experienced field engineers offer deep technical insight and customer-focused guidance throughout the design process, providing in-depth product knowledge and application expertise to ensure optimal integration of technology into complex systems. "With their long-standing relationships and technical depth in key verticals like aerospace and defense, Vic Myers Associates is an ideal extension of Acumentrics' sales team in this important region," said Brian Price, Vice President of Global Sales & Marketing at Acumentrics. "Their ability to support our customers from early design concepts through deployment is a natural fit with Acumentrics' lifecycle approach to power systems." Ryan Christian, President of Vic Myers Associates, shared his perspective: "We're excited to join forces with Acumentrics and help bring their robust power technologies to our customer base. Their expertise in SWaP-optimized, MIL-STD-compliant power solutions aligns well with the demands of the platforms we support, and we look forward to growing together in the years ahead." This collaboration marks a significant step forward in Acumentrics' mission to provide customers with high-performance, reliable power solutions designed to meet the rigorous demands of today's defense, aerospace, and industrial environments. Together, Acumentrics and Vic Myers Associates will deliver greater accessibility, responsiveness, and value to customers across the Western United States. Click here for high resolution image of Vic Myers Associates logo. View source version on Contacts Brian Price Global Vice President of Sales and MarketingAcumentrics, Inc.781-815-6047bprice@ Jason Quinten Western Regional Sales ManagerAcumentrics, Inc.781-824-3973jquinten@ Ryan Christian President, Field Engineer (AZ/NV)Vic Myers Associates480-577-7172ryanc@ Sign in to access your portfolio

Elon Musk fans flock to new Tesla Diner: See the opening day photos
Elon Musk fans flock to new Tesla Diner: See the opening day photos

USA Today

time16 minutes ago

  • USA Today

Elon Musk fans flock to new Tesla Diner: See the opening day photos

Billionaire tech entrepreneur Elon Musk, who once called himself the "first buddy" of President Donald Trump, opened a futuristic restaurant called Tesla Diner and Drive-In in Hollywood, California, this week as fans waited for hours to see the intersection of technology and hospitality. Located in West Hollywood, the Tesla Diner is open 24 hours a day and features 80 charging stations. Customers can also watch movies on two 66-foot screens while an Optimus robot serves popcorn. Eric Greenspan, a Los Angeles-based chef, created the menu for the establishment, according to the Los Angeles Times. With a focus on classic comfort foods, the options include fried chicken and waffles, grilled cheese, tuna melts, alongside themed items like the "Tesla Burger" with "Electric Sauce." All-day breakfast options are also available, including avocado toast, biscuits and gravy, and house-made cinnamon rolls. According to LA Eater, diners can also order sides like wagyu beef chili cups, a market salad, and "epic" bacon. Musk first proposed the idea of combining a futuristic diner with a Tesla supercharger station back in 2018, tweeting, "Gonna put an old school drive-in, roller skates & rock restaurant at one of the new Tesla Supercharger locations in LA." Now that the idea has come to life, Musk said he hopes to establish more futuristic diners in major cities around the globe."If our retro-futuristic diner turns out well, which I think it will," tweeted Musk on July 19, "@Tesla will establish these in major cities around the world, as well as at Supercharger sites on long-distance routes."

DOWNLOAD THE APP

Get Started Now: Download the App

Ready to dive into a world of global content with local flavor? Download Daily8 app today from your preferred app store and start exploring.
app-storeplay-store