Wolfspeed Inc. (NYSE: WOLF), a global provider of silicon carbide technologies, announced on Monday that it has filed for Chapter 11 protection under the U.S. Bankruptcy Code as part of its plan to implement a previously announced Restructuring Support Agreement (RSA). The move is aimed at strengthening the company’s capital structure and positioning it for long-term growth.
The RSA is backed by holders of more than 97% of Wolfspeed’s senior secured notes, Renesas Electronics Corporation’s U.S. subsidiary, and more than 67% of its convertible noteholders. Under the agreement, Wolfspeed expects to reduce its total debt by approximately $4.6 billion, or around 70%, and lower its annual cash interest payments by about 60%.
The company stated it will continue normal business operations throughout the restructuring process. This includes the delivery of silicon carbide materials and devices to customers, as well as payments to vendors. Wolfspeed anticipates completing the restructuring and emerging from Chapter 11 by the end of the third quarter of calendar year 2025.
In a statement, Chief Executive Officer Robert Feurle said, “We are moving forward with our restructuring process to strengthen our capital structure. With a stronger financial foundation, Wolfspeed will be better positioned to advance its strategic priorities and maintain its role in the silicon carbide market.”
Wolfspeed’s operations, including its fully automated 200mm manufacturing facilities, will remain active, with employee compensation and vendor payments continuing under normal terms. The company has filed standard motions with the bankruptcy court to support these ongoing activities and expects court approval in the near term. An All-Trade Motion has also been filed to ensure vendors remain unaffected.
Wolfspeed indicated that the restructuring is intended to improve financial flexibility and accelerate its path to profitability. The company continues to focus on meeting demand in high-growth sectors such as electric vehicles, energy infrastructure, and industrial power systems.
