Wolfspeed, a global company in silicon carbide technologies, received court approval of its plan of reorganization. Wolfspeed expects to emerge from Chapter 11 protection in the next several weeks. Upon emergence, Wolfspeed expects to reduce its debt by approximately 70%, better positioning the company to execute on its strategic priorities.
“We are pleased to reach this important milestone, which clears the path for us to complete our restructuring process in the coming weeks,” Robert Feurle, CEO of Wolfspeed, said. “We believe that strengthening our capital structure will help us to shape Wolfspeed into a leader in its industry, and we look forward to emerging with the financial flexibility to move swiftly on our strategic priorities and reinforce our leadership in silicon carbide. I would like to thank our talented team for their continued focus and hard work, our customers and vendors for their ongoing cooperation and the lending group who supported our plan of reorganization.”
Latham & Watkins and Hunton Andrews Kurth are serving as legal counsel to Wolfspeed, Perella Weinberg Partners is serving as financial advisor to Wolfspeed and FTI Consulting is serving as restructuring advisor to Wolfspeed. Paul, Weiss, Rifkind, Wharton & Garrison is serving as legal counsel to the senior secured noteholders and Moelis is serving as the senior secured noteholders’ financial advisor. Kirkland & Ellis is serving as legal counsel to Renesas Electronics Corporation, PJT Partners is serving as its financial advisor, and BofA Securities is serving as its structuring advisor. Ropes & Gray is serving as legal counsel to the convertible debtholders and Ducera Partners is serving as financial advisor to the convertible debtholders.
