Wolfspeed Gains Court Approval for Chapter 11 Exit, Plans 70% Debt Reduction

Wolfspeed, a Durham, North Carolina-based silicon carbide technology company, has received court approval for its Chapter 11 reorganization plan and expects to emerge from bankruptcy protection within the next several weeks. The approved plan will reduce Wolfspeed's debt by approximately 70%, cutting over $4.6 billion in funded debt, and aims to strengthen the company's financial position to better execute its strategic priorities in silicon carbide innovation. The restructuring will provide shareholders with new public-listed equity and leave unsecured creditors unimpaired, while the reorganized company's enterprise value is estimated between $2.35 billion and $2.85 billion. Wolfspeed CEO Robert Feurle expressed optimism about emerging from bankruptcy with increased financial flexibility and thanked employees, customers, vendors, and lenders for their support. The company continues to operate during the restructuring process and is working with legal and financial advisors, including Latham & Watkins LLP, Hunton Andrews Kurth LLP, Perella Weinberg Partners, and FTI Consulting. Discussions with regulatory bodies remain ongoing as Wolfspeed plans to complete its emergence by the end of September.