US silicon carbide (SiC) chip manufacturer Wolfspeed announced that it will implement a previously announced reform support agreement with key debtors. Currently, Wolfspeed has been willing to submit a restructuring application under Chapter 11 of t...
US silicon carbide (SiC) chip manufacturer Wolfspeed announced that it will implement a previously announced reform support agreement with key debtors. Currently, Wolfspeed has been willing to submit a restructuring application under Chapter 11 of the US Crackdown Law and has completed the restructuring process at the end of the third quarter.
Wolfspeed will reduce the overall debt by about 70%, about US$4.6 billion, and the total annual cash interest payment will be reduced by about 60%. Wolfspeed is expected to implement long-term growth strategies and accelerate the road to profitability. Wolfspeed continues to operate as usual, ships silicon carbide materials and components, and pays the supplier in a normal manner.
Wolfspeed executive Robert Feurle said that the restructuring will continue to accelerate, strengthen the capital structure, and promote the next stage of growth. With a stronger financial foundation, we will promote operational strategies and maintain our position as the global leader in the silicon carbide market. The Debtor strongly supports the proof of confidence in the business and the ability to leverage future opportunities, benefiting from a specially constructed fully automated 8-inch crystalline production line.
Second-year semi-conductor manufacturer Renesas Electronics announced that it had reached a reorganization support agreement with Wolfspeed and its key debtors, agreeing to convert US$2.062 billion of unpaid principal into convertible corporate debt, common shares and shareholding rights issued by Wolfspeed to support Wolfspeed's reorganization plan.
