BY Fraser Tennant
Three months after filing, chipmaker Wolfspeed has emerged from Chapter 11 bankruptcy protection following the successful completion of its financial restructuring process.
As a result of the restructuring, Wolfspeed has reduced its total debt by approximately 70 percent, with maturities extended to 2030, and lowered its annual cash interest expense by around 60 percent.
In addition, the company maintains ample liquidity to continue supplying customers with leading silicon carbide solutions. With a self-funded business plan supported by free cash flow generation, Wolfspeed is well positioned to leverage its vertically-integrated 200mm manufacturing footprint – underpinned by a secure and scalable US-based supply chain – to drive sustainable growth.
The company filed for Chapter 11 in June, citing production delays at its New York State factory, increased Chinese chip competition and flagging electric vehicle (EV) demand, as well as mounting debt obligations.
“Wolfspeed has emerged from its expedited restructuring process, marking the beginning of a new era,” said Robert Feurle, chief executive of Wolfspeed. “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.”
Founded in 1987 under the name Cree, Wolfspeed manufactures a unique semiconductor material – silicon carbide – used in EVs, fast-charging stations and renewable energy storage units. The company also has a lineup of power devices.
“We firmly believe that we are well positioned to capture rising demand in end markets, such as artificial intelligence, EVs, industrial and energy, that are rapidly growing and recognising silicon carbide’s potential,” continued Mr Feurle. “We remain committed to our mission to deliver cutting-edge solutions to our customers to ensure Wolfspeed remains at the forefront of the industry.”
In connection with its emergence from Chapter 11, Wolfspeed has appointed five new directors to join its board, each bringing extensive semiconductor and industry knowledge, and deep accounting and finance expertise.
“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,” concluded Mr Feurle. “I look forward to unleashing the full potential of the platform that we have built with a much stronger financial foundation to support us.”
News: Wolfspeed exits Chapter 11 bankruptcy, slashes debt and interest costs