US EditionWolfspeed to Declare Bankruptcy, Report States
- Wolfspeed, a silicon carbide semiconductor company with a manufacturing plant in Marcy, saw its stock drop about 70% on Wednesday after reports emerged of an imminent Chapter 11 bankruptcy filing.
- The bankruptcy preparations followed failed out-of-court debt restructuring efforts and growing financial pressures, including a $5.2 billion net debt load and cash burn of $1.5 billion in nine months.
- Wolfspeed operates a much-touted Marcy fabrication facility and invested $5 billion in a delayed North Carolina plant intended to supply chip wafers for finishing at Marcy.
- Management considers a "prepackaged" Chapter 11 plan, aiming for $200 million annual cash savings, while the company carries a going concern warning and faces competition from cheaper Chinese manufacturers.
- The filing could dilute current equity, leaving investors with little, although negotiations with creditors continue, suggesting bankruptcy is not yet certain and an out-of-court resolution remains possible.
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Wolfspeed, a US Semiconductor Company, May Go Bankrupt; Shares Fall 60%, Renesas Is a Trading Partner
[Silicon Valley - Shimizu Kosuke] The Wall Street Journal (WSJ) reported on the 21st that Wolfspeed, a major American power semiconductor manufacturer, is preparing to file for Chapter 11 bankruptcy, which is equivalent to Japan's Civil Rehabilitation Act. The company said it may file within the next few weeks. The company's stock price temporarily fell by about 60% on the 21st compared to the previous day's closing price on the U.S. stock marke…
·Japan
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Wolfspeed Stock: Can It Recover? @themotleyfool #stocks $WOLF
·Alexandria, United States
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Wolfspeed Reportedly Prepping Bankruptcy Filing After Snubbing Debt Deals, Buckling Under $6.5 Billion Burden—Stock Plunges Over 60% - Apollo Global Management (NYSE:APO), Wolfspeed (NYSE:WOLF)
Silicon carbide component manufacturer Wolfspeed Inc. (NYSE: WOLF) is preparing to file for prepackaged Chapter 11 bankruptcy protection in the coming weeks.
·New York, United States
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Coverage Details
Total News Sources13
Leaning Left1Leaning Right2Center3Last UpdatedBias Distribution50% Center
Bias Distribution
- 50% of the sources are Center
50% Center
L 17%
C 50%
R 33%
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