Wolfspeed, Inc. (NYSE: WOLF), a company specializing in silicon-carbide technologies, has completed its financial-restructuring process, and on Sept. 29 announced its emergence from Chapter 11 bankruptcy protection. Based in Durham, North Carolina, Wolfspeed operates a plant in Marcy, in Oneida County. Through the restructuring process, the chipmaker has reduced its total debt by about 70 […]
Wolfspeed, Inc. (NYSE: WOLF), a company specializing in silicon-carbide technologies, has completed its financial-restructuring process, and on Sept. 29 announced its emergence from Chapter 11 bankruptcy protection.
Based in Durham, North Carolina, Wolfspeed operates a plant in Marcy, in Oneida County.
Through the restructuring process, the chipmaker has reduced its total debt by about 70 percent, with maturities extended to 2030, and lowered its annual cash-interest expense by about 60 percent, per Wolfspeed’s announcement. In addition, the company believes that it “maintains ample liquidity” to continue supplying customers with leading silicon-carbide products.
With a self-funded business plan supported by free cash-flow generation, Wolfspeed says it is “well positioned to leverage its vertically-integrated 200mm manufacturing footprint — underpinned by a secure and scalable U.S.-based supply chain — to drive sustainable growth.”
“Wolfspeed has emerged from its expedited restructuring process, marking the beginning of a new era, which we are entering with new energy and a renewed commitment to the growth mindset and entrepreneurial spirit that have powered Wolfspeed since its inception,” Robert Feurle, CEO of Wolfspeed, said in the company’s announcement. “As we enter this new era, we do so with much improved financial stability, a scaled, greenfield and vertically integrated 200mm facility footprint, and our large capital deployment behind us.”
In the process of emerging from bankruptcy, Wolfspeed said it canceled and retired its old common stock (totaling about 156.5 million shares), and issued more than 25.8 million shares of new common stock. The company also converted from a North Carolina corporation to a Delaware corporation and adopted new bylaws, according to its Sept. 30 Form 8-K filing with the U.S. Securities & Exchange Commission.
Mohawk Valley EDGE reaction
In a separate statement, Mohawk Valley EDGE said that Wolfspeed had informed the Rome–based economic-development organization back on June 22 that it intended to enter into a restructuring-support agreement with key lenders. The agreement helped the company reduce its debt load.
Mohawk Valley EDGE went on to say that throughout this process, Wolfspeed has “remained fully committed” to its local obligations and partnerships, including those with the Oneida County Industrial Development Agency (OCIDA) and Mohawk Valley EDGE.
“The Mohawk Valley has faced its share of challenges over the years — from economic shifts to global disruptions — but our community has always responded with resilience, collaboration, and a shared commitment to progress,” Shawna Papale, president of Mohawk Valley EDGE, said in its statement. “Wolfspeed’s emergence from bankruptcy is a testament to that same spirit of perseverance and partnership.”
