(Reuters) -Wolfspeed said on Sunday that it has reached a restructuring agreement with creditors and plans to file for bankruptcy in the U.S. in the near future.
The restructuring agreement would provide the struggling chipmaker with $275 million in fresh financing by some of its existing creditors, the company said in a statement.
Wolfspeed said it plans to seek approval on its pre-packaged plan and subsequently emerge out of bankruptcy by the end of third quarter calendar year 2025.
The company has about $1.3 billion in cash as of the third quarter of the 2025 financial year to continue regular operations in the near term, it said, adding that the restructuring would help it reduce existing debt by about $4.6 billion.
In a prepackaged bankruptcy, companies and their creditors agree on a reorganization plan prior to the bankruptcy filing and creditors even vote on the plan.
The chipmaker raised going-concern doubts in May, as deepening economic uncertainty stemming from changing U.S. trade policies, combined with weakening demand, triggered a series of financial challenges.
(Reporting by Rhea Rose Abraham in Bengaluru; Editing by Rashmi Aich and Mrigank Dhaniwala)
