Wolfspeed exits Chapter 11 bankruptcy, slashes debt and interest costs

Sept 29 (Reuters) – Chipmaker Wolfspeed said on Monday it has exited Chapter 11 bankruptcy after cutting its total debt by nearly 70% and lowering annual cash interest expense by roughly 60%. The company said it has sufficient liquidity to continue supplying customers with silicon carbide-based chips. Wolfspeed filed for Chapter 11 protection in late June in the U.S. Bankruptcy Court for the Southern District of Texas, after flagging going-concern doubts in May, citing deepening economic uncertainty from changing U.S. trade policies and weakening demand that triggered financial challenges. The company on Monday also added five new directors to its board, including Mike Bokan, most recently senior vice president of worldwide sales at Micron, and Eric Musser, who is set to retire this year as president of Corning Inc. Wolfspeed makes silicon carbide-based chips, which are more energy-efficient and used in high-power-conversion applications such as electric vehicles, solar inverters and industrial power systems. (Reporting by Juby Babu in Mexico City; Editing by Tasim Zahid)

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