Wolfspeed files for bankruptcy protection

[hist78]

"The plan is expected to wipe out roughly 70% of the company’s $6.7 billion in debt and reduce annual cash interest payments by about 60%. The proposal would also give Wolfspeed’s creditors control of the company. Wolfspeed expects to emerge from bankruptcy by the end of September.

Wolfspeed said the plan is aimed at better positioning the company for its long-term growth strategy and accelerating its path to profitability. The company said it will continue to operate normally throughout the process, including delivering silicon carbide materials and devices to its customers and paying its vendors.

“We are continuing to move forward with our accelerated restructuring process to strengthen our capital structure and fuel our next phase of growth,” Wolfspeed Chief Executive Robert Feurle said in a statement. “With a stronger financial foundation, Wolfspeed will be better positioned to move faster on our strategic priorities and maintain our position as a global leader in the silicon carbide market.”"

Durham chipmaker Wolfspeed files for bankruptcy protection, seeking to reduce debt, remerge

The homegrown Triangle technology manufacturer filed for Chapter 11 bankruptcy protection as part of a previously announced restructuring plan. The company has been working to pay down debt and cut costs amid softer demand for semiconductors.

www.wral.com

 

[Paul2]

"The plan is expected to wipe out roughly 70% of the company’s $6.7 billion in debt and reduce annual cash interest payments by about 60%. The proposal would also give Wolfspeed’s creditors control of the company. Wolfspeed expects to emerge from bankruptcy by the end of September.

Wolfspeed said the plan is aimed at better positioning the company for its long-term growth strategy and accelerating its path to profitability. The company said it will continue to operate normally throughout the process, including delivering silicon carbide materials and devices to its customers and paying its vendors.

“We are continuing to move forward with our accelerated restructuring process to strengthen our capital structure and fuel our next phase of growth,” Wolfspeed Chief Executive Robert Feurle said in a statement. “With a stronger financial foundation, Wolfspeed will be better positioned to move faster on our strategic priorities and maintain our position as a global leader in the silicon carbide market.”"

Durham chipmaker Wolfspeed files for bankruptcy protection, seeking to reduce debt, remerge

The homegrown Triangle technology manufacturer filed for Chapter 11 bankruptcy protection as part of a previously announced restructuring plan. The company has been working to pay down debt and cut costs amid softer demand for semiconductors.

www.wral.com

I see creditors being very happy to sell the equipment (which will be inevitably scooped by second hand equipment vendors, who will obviously pass it to the most likely buyer)