Wolfspeed, Inc. has officially completed its financial restructuring process and has emerged from Chapter 11 bankruptcy protection.
Wolfspeed is a chip manufacturer that, in 2024, invested $2.5 billion in federal funds, private investment, and federal tax credits for the expansion of its silicon carbide fabrication facility in Marcy and its materials manufacturing facility in North Carolina. The Marcy facility first opened in 2022.
Wolfspeed, Inc. and Wolfspeed Texas LLC filed for bankruptcy in the Texas Southern District Bankruptcy Court on June 30, and the bankruptcy plan was approved by United States Bankruptcy Judge Christopher Lopez on Sept. 8.
According to a statement from Wolfspeed, Inc. officials, the restructuring process had reduced Wolfspeed’s debt by approximately 70%, with maturities extended to 2030, and lowered its annual cash interest expense by roughly 60%.
“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,” said Robert Feurle, chief executive officer of Wolfspeed in a statement. “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.”
Mohawk Valley EDGE responds
Mohawk Valley EDGE officials reacted to the emergency from bankruptcy with a statement, saying it marked a significant milestone.
“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,” said Mohawk Valley EDGE President Shawna Papale in the statement. “Wolfspeed’s emergence from bankruptcy is a testament to that same spirit of perseverance and partnership.”
“We are proud of Wolfspeed’s resilience and the leadership they have demonstrated during this time,” added Papale. “We look forward to continuing our strong partnership as they enter a new era of growth and innovation.”
Looking forward
Feurle said he believed Wolfspeed was in a position to capture rising demand in end markets, such as AI, EVs, industrial, and energy sectors.
“We remain committed to our mission to deliver cutting-edge solutions to our customers to ensure Wolfspeed remains at the forefront of the industry,” the CEO said. “I am deeply grateful to our valued employees, who are the key drivers of our success, as well as to our customers, vendors and lenders for their unwavering support and confidence throughout this process. I look forward to unleashing the full potential of the platform that we have built with a much stronger financial foundation to support us.”
This article originally appeared on Observer-Dispatch: Wolfspeed finishes financial restructuring process, reduces debt
Reporting by Casey Pritchard, Utica Observer Dispatch / Observer-Dispatch
USA TODAY Network via Reuters Connect
