A critical juncture arrives today for semiconductor manufacturer Wolfspeed, as a U.S. bankruptcy court in Texas convenes to review the company’s Chapter 11 restructuring proposal. This hearing represents the culmination of an expedited financial overhaul that commenced with a voluntary bankruptcy filing on June 30.
Financial Overhaul and Leadership Shift
Central to the proceedings is a pre-packaged plan designed to fundamentally reshape the company’s capital framework. The proposal aims to slash Wolfspeed’s total debt by approximately $4.6 billion, representing a reduction of nearly 70%. This dramatic cut is projected to decrease annual interest expenses by about 60%.
The restructuring initiative received overwhelming creditor support even before its formal submission, with holders of more than 97% of the senior secured bonds endorsing the agreement.
Should investors sell immediately? Or is it worth buying Wolfspeed?
Simultaneously, the company has strengthened its leadership team. Gregor van Issum officially assumed the role of Chief Financial Officer on September 1. The transformation and finance specialist, whose previous experience includes positions at ams-OSRAM and NXP Semiconductors, reports directly to CEO Robert Feurle.
Quarterly Performance Highlights Challenges
Recent financial results underscore the necessity of these comprehensive measures. For the critical third fiscal quarter of 2025, which concluded on March 30, the company reported:
- Revenue: Approximately $185.4 million
- Net Loss: $285.5 million on a GAAP basis
- Liquidity: Roughly $1.3 billion in cash and available funds
Through the Chapter 11 process, Wolfspeed intends to execute its Restructuring Support Agreement with the goal of emerging from bankruptcy by the conclusion of the third calendar quarter of 2025. The company believes the completed procedure will create a stronger foundation for implementing its long-term strategy and accelerating its path toward sustainable profitability.
Ad
Wolfspeed Stock: Buy or Sell?! New Wolfspeed Analysis from January 24 delivers the answer:
The latest Wolfspeed figures speak for themselves: Urgent action needed for Wolfspeed investors. Is it worth buying or should you sell? Find out what to do now in the current free analysis from January 24.
Wolfspeed: Buy or sell? Read more here...
