Wolfspeed to file for Chapter 11 in deal cutting 70% of debt
Briefly

Wolfspeed is set to file for Chapter 11 bankruptcy after reaching a Restructuring Support Agreement with creditors to reduce its $6.5 billion debt by about 70%. This move involves converting $5 billion of unsecured debt into new shares for creditors. The company's high debt was primarily due to investments in production facilities. CEO Robert Feurle emphasized that this strategic step aims to strengthen their balance sheet and prepare Wolfspeed for a sustainable future with improved liquidity from $275 million in fresh funding.
The transactions envisioned by the RSA are expected to reduce the company's overall debt by approximately 70 percent, representing a reduction of approximately $4.6 billion.
After evaluating potential options to strengthen our balance sheet and right-size our capital structure, we have decided to take this strategic step because we believe it will put Wolfspeed in the best position possible for the future.
Read at Theregister
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