Wolfspeed Inc. (NYSE: WOLF), a leading player in silicon carbide technology, said it has secured court approval for its Plan of Reorganization, clearing the way to exit Chapter 11 protection in the coming weeks.
The North Carolina-based company expects the restructuring to reduce its debt load by about 70%, giving it greater financial flexibility to execute on its strategic priorities. Wolfspeed, which supplies silicon carbide materials and devices used in electric vehicles, renewable energy, and industrial power applications, has faced heavy capital expenditures as it scaled production to meet growing demand.
Chief Executive Officer Robert Feurle said the approval marks a “critical milestone” in Wolfspeed’s turnaround. “Strengthening our capital structure will help us shape Wolfspeed into a leader in its industry,” he said, adding that the company will focus on innovation and growth once it emerges from bankruptcy.
The restructuring plan was backed by Wolfspeed’s lending group and supported by customers and vendors, according to the company. With a leaner balance sheet, Wolfspeed aims to reinforce its position in the fast-expanding silicon carbide sector, which is increasingly vital to the transition toward electrification and energy efficiency.
