Wolfspeed plans to bankruptcy in the deal reached with creditors

(Reuters) -Sit (wolfThe chip maker, who is fighting on Sunday, said plans to submit a bankruptcy request in the United States under a restructuring agreement with creditors, which will provide her with new financing and almost 70 % reduction.

Wolfspeed raised the ongoing doubts in May, as deepening the economic uncertainty resulting from changing American trade policies, along with poor demand, raised a series of financial challenges.

Wolfves said in a statement that the restructuring agreement, which was reached with creditors and companies affiliated to the RNSAS Electronics, will lead to $ 275 million of new financing supported by some current creditors and help reduce debt by $ 4.6 billion.

Wolfspeed plans to request approval of its pre -packed plan and then leaves the bankruptcy by the end of the third quarter of the orthopedic year 2025.

In pre -packed bankruptcy, companies and creditors agree to the reorganization plan before submitting bankruptcy and voting on creditors on the plan.

The company intends to continue regular operations during the restructuring process.

As of March, he had about $ 1.33 billion in cash, and about $ 6.5 billion of debt obligations.

Last week, Bloomberg News reported that the company’s plans to submit a pre -packed bankruptcy. The report said that Wolfspeed will take control of it by creditors, including Apollo Global Management.

In 2023, Wolfspeed announced $ 1.25 billion debt financing led by APollo, with the option to increase the total to two billion dollars to support expansion in the United States.

The company has undergone a series of leadership changes in the past few months, with the appointment of the veteran in the industry Robert Fiorel as its executive head in March and David Emerson in May after he announced in May that it would reduce the Supreme Command team by 30 %.

(Participate in the coverage of Rhea Rose Abraham and Kanjyik Ghosh in Bangaluru; editor of Rashmi Ayc and Merikant Deniola)