Wolfspeed Emerges From Restructuring With Cleaner Balance Sheet

The semiconductor manufacturer Wolfspeed has successfully concluded its independent restructuring process, formally exiting Chapter 11 bankruptcy protection at the end of September. This corporate turnaround, however, came at a steep cost for existing shareholders, who saw their investments nearly wiped out as creditors assumed control of the reorganized company. The development marks a pivotal moment for this pioneer in silicon carbide technology.

A drastic financial restructuring has positioned Wolfspeed with a significantly stronger balance sheet. The company slashed its total debt burden by approximately 70%, eliminating some $4.6 billion in liabilities. Terms for the remaining debt were extended out to 2030, and the firm anticipates its annual interest expenses will drop by about 60%.

This financial reset delivered a devastating blow to... Read more...