Wolfspeed, Inc. and its debtor affiliate Wolfspeed Texas, LLC emerged from chapter 11 on September 29, 2025 under a prepackaged plan confirmed by Judge Christopher M. Lopez on September 8, 2025 (Order Confirming Chapter 11 PlanDkt. 285), closing a roughly three-month case in the Southern District of Texas that cut the silicon carbide semiconductor maker's funded debt from approximately $6.75 billion to $2.12 billion and reduced annual cash interest from roughly $400 million to $160 million. The case is now in post-effective-date administration, with the confirmed plan governing the reorganized company's go-forward capital structure.
The June 30, 2025 filing followed a liquidity crisis tied to the capital-intensive build-out of the Mohawk Valley Fab in Marcy, New York and the Siler City, North Carolina materials facility. Negative adjusted EBITDA, approximately $6.5 billion of debt for the LTM ending March 2025, an uncertain $750 million CHIPS Act funding outlook, a failed March 2025 out-of-court restructuring, and a 50% equity decline on March 28, 2025 drove the company into court (Declaration of Daniel HugoDkt. 5). The Debtors arrived with a Restructuring Support Agreement dated June 22, 2025 and a fully solicited prepackaged plan filed on the petition date (Chapter 11 PlanDkt. 8), with roughly 3,325 employees and four manufacturing sites across North Carolina, New York, and Arkansas continuing to operate through the cases.
The prepetition capital structure centered on $1.525 billion of first-lien Senior Secured Notes due June 2030, three tranches of unsecured convertible notes totaling approximately $3.1 billion (the 2026, 2028, and 2029 series), and $2.127 billion of unsecured Renesas customer refundable deposit loans. Postpetition liquidity was cash-collateral-only, with no DIP borrowing facility authorized; the Debtors operated under an interim and then a final cash-collateral order entered August 1, 2025, which terminated by its own terms when the plan became effective on September 29, 2025.
The confirmed plan delivers the Senior Secured Noteholders (Class 3) new first-lien notes plus an effective-date cash payment redeeming $250 million of principal at 109.875% plus interest. The Convertible Noteholders (Class 4) receive new second-lien convertible notes (a $331.375 million instrument carrying a $30.25 million backstop premium), $296 million of 2L takeback notes, and 56.3% of the new common stock. Renesas (Class 5) takes $204 million of 2L takeback notes, 38.7% of the new common stock, and warrants. Existing equity (Class 10) recovers 5.0% of new common, diluting to 3.0% on a distribution event, while general unsecured claims are unimpaired (Order Confirming Chapter 11 PlanDkt. 285).
The exit governance and intercreditor architecture is documented in the Seventh Plan Supplement filed September 28, 2025, which incorporates the first-lien/second-lien and pari passu intercreditor agreements, the new note indentures, the reorganized company's certificate of incorporation, and the long-term and management incentive plans (Seventh Plan SupplementDkt. 305).
