Durham-based semiconductor company Wolfspeed has announced its restructuring plan as it files for bankruptcy.
Wolfspeed has reached a restructuring agreement with its major lenders that will reduce the company's debts by about $4.6 billion, or 70%. The lenders, which include Japan-based Renesas Electronics Corporation, will gain control over the company.
Wolfspeed said in a news release that the plan will allow it to complete the Chapter 11 bankruptcy process by this fall. It says it will continue to produce semiconductor products and pay its employees and vendors throughout the process.
“After evaluating potential options to strengthen our balance sheet and right-size our capital structure, we have decided to take this strategic step because we believe it will put Wolfspeed in the best position possible for the future," said CEO Robert Feurle, who joined the company in May, replacing longtime leader Gregg Lowe.
The news release doesn't mention any possible impacts on Wolfspeed's new manufacturing facility nearing completion in Chatham County. The company had pledged to employ up to 1,800 people in Siler City, but it laid off some of its first employees there in March. The $5 billion facility had been scheduled to begin operations sometime this year.
Shares of Wolfspeed stock were trading around 50 cents on Monday following the announcement, down from over $100 a few years ago.
