Wolfspeed to File Chapter 11 by July 1, Cutting $4.6 Billion Debt Nearly 70% in Apollo-Led Deal with Renesas

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Published Jun 30, 2025, 04:47 PM

Wolfspeed Inc., a North Carolina-based semiconductor manufacturer specializing in chips for electric vehicles, is set to file for Chapter 11 bankruptcy by July 1, 2025. The company has reached a restructuring agreement with its creditors, including Apollo Global Management and Renesas, which will reduce its total debt by approximately $4.6 billion, or nearly 70%. This debt reduction is expected to slash Wolfspeed's interest costs by 60%. The restructuring support agreement has backing from over 97% of senior secured noteholders and more than 67% of convertible debtholders.

As part of the deal, control of Wolfspeed will be handed over to convertible noteholders, and the bankruptcy filing is designed to be brief, allowing the company to reorganize its finances and secure fresh financing. The restructuring marks one of the largest Chapter 11 filings in the semiconductor sector since Steward Health Care's $9 billion bankruptcy in May 2024. The move follows Wolfspeed's struggles with a total debt load initially reported near $6.5 billion. The bankruptcy filing is expected to impact shareholders significantly, with the debt restructuring package nearly wiping out their stakes. Japanese semiconductor firm Renesas is also involved in the restructuring and may face losses related to Wolfspeed's financial difficulties.

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#North Carolina #Apollo Global Management #Renesas #Wolfspeed #Steward Health Care #Japanese

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Sources

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Law360

@Law360

Rising costs, heavy investment that outpaced growth and patent litigation led California-based biotechnology company Synthego Corp. to file for Chapter 11 with up to $500 million in debt and a plan to sell its assets to a prepetition lender.

Wexboy

@Wexboy_Value

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Wexboy

@Wexboy_Value

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