The company has entered arrangement with creditors that reduces by $4.6 billion its total debts estimated by Reuters at $6.5 billion. The company says it will reduce its interest bill on the debt by 60% . The company has cash of $1.3 billion.
“Wolfspeed is continuing to operate as usual throughout the process, including delivering silicon carbide materials and devices to its customers and paying its vendors in the ordinary course,” it said in a statement.
The company’s shares rose 64.5% after yesterday’s announcement of the Chapter 11 filing.
Wolfspeed said that some of the creditors has put up $275 million in cash.
“We are continuing to move forward with our accelerated restructuring process to strengthen our capital structure and fuel our next phase of growth,” said CEO Robert Feurle, “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. The strong support of our lenders is a testament to their belief in our business and our ability to capitalize on the opportunities ahead, driven by our exceptional, purpose-built, fully automated 200mm manufacturing footprint.”
He continued, “Looking ahead, we remain laser-focused on delivering cutting-edge products to our customers and working with our vendors in the normal course. I’d also like to thank our employees for their hard work and continued commitment to driving the business forward. I am confident that taking this action will better position Wolfspeed to meet the growing demands of the semiconductor market.”
