Latest news with #WolfspeedInc.
Mint
30-06-2025
- Business
- Mint
Struggling Semiconductor Firm Wolfspeed Files for Bankruptcy
(Bloomberg) -- Wolfspeed Inc., a chipmaker caught in President Donald Trump's push to reshape Biden-era tech subsidies, filed bankruptcy to enact a creditor-backed plan to slash $4.6 billion in debt. The North Carolina-based company filed petitions for reorganization under Chapter 11, according to a statement released on Monday. It expects to emerge out of bankruptcy by the end of the third quarter, it said. The filing marks one of the largest bankruptcies so far this year, behind only Brazilian airline Azul SA and satellite company Ligado Networks, according to data compiled by Bloomberg. A restructuring agreement is supported by a majority of holders of its senior secured notes, its convertible debtholders and Renesas Electronics Corp., a major customer in Japan, the company said. The company expects to further focus on 200mm silicon carbide wafer manufacturing, Robert Feurle, Wolfspeed's chief executive officer, said in a statement. Just days prior to the filing, Wolfspeed said it had struck a restructuring deal and intended to file Chapter 11. Wolfspeed, which makes semiconductors, has been in discussions with lenders including Apollo Global Management Inc. on its debt load, and sought to refinance convertible bonds due next year. The chipmaker has said it will cut bond debt and a loan from Renesas by swapping that debt for equity in the reorganized company. Short sellers, bearish investors who make money when a stock declines, have piled into Wolfspeed this year as the company's woes snowballed. In the past few months, Wolfspeed announced changes to its management team and had warned of the prospect of a bankruptcy, saying that it had hired advisers to help address its debt load. To expand production, the firm won a $750 million award last year from the federal government under the CHIPS and Science Act, which had been backed by former President Joe Biden. But since Trump took office in January, his administration has been reworking many of the awards. Wolfspeed has only collected part of the money and has been locked in negotiations with the administration about the award, according to a regulatory filing. --With assistance from Dorothy Ma. More stories like this are available on
Mint
27-06-2025
- Business
- Mint
Wolfspeed Plans Bankruptcy After Clinching Deal With Creditors
(Bloomberg) -- Wolfspeed Inc. is planning to file for bankruptcy by July 1 with a deal to slash its debt by about $4.6 billion and hand over control to convertible noteholders. The chipmaker, caught in President Donald Trump's push to reshape Biden-era tech subsidies, said late Sunday it reached a restructuring agreement with a majority of its creditors and Renesas Electronics Corp., a major customer based in Japan, to cut its debt by 70% and reduce annual interest expenses by 60%. Bloomberg reported last week that the Durham, North Carolina-based company was in talks with creditors including Apollo Global Management Inc. to hand them control and prepare for a prepackaged bankruptcy filing. Under the plan, Wolfspeed's existing shareholders will keep a stake of as much as 5% in the restructured entity, as reported by Bloomberg. Wolfspeed's shares fell as much as 32.2% on Monday. Wolfspeed said it expects to emerge from court protection by the end of the third quarter this year, subject to court approval. In May, the company warned of the prospect of a bankruptcy, saying that it had hired advisers to help address its debt load. To expand production, the firm won a $750 million award last year from the federal government under the Chips and Science Act, which had been backed by former President Joe Biden. Since Trump took office in January, his administration has been reworking many of the awards. Wolfspeed has only collected part of the money and has been locked in negotiations with the administration about the award, according to a regulatory filing. The restructuring deal was agreed with 97% of Wolfspeed's senior secured noteholders, and 67% of the convertible noteholders, according to the statement. Renesas said it agreed to convert its $2.1 billion deposit into convertible notes, common stock and warrants, according to a separate press release. As part of the restructuring agreement, the company will receive new $275 million of second-lien convertible bonds from some of its existing holders. More stories like this are available on
Bloomberg
28-03-2025
- Business
- Bloomberg
Wolfspeed Stock Sinks as Convertible Refinancing Deal Hits Snag
Wolfspeed Inc. is struggling to reach a deal with investors to refinance its $575 million convertible bonds due next year. The Durham, North Carolina-based chipmaker has been working with JPMorgan Chase & Co. on the refinancing effort, according to people with knowledge of the matter, who asked not to be identified discussing private talks.
