The prominent "Wolf" bankruptcy news is that semiconductor manufacturer Wolfspeed filed for Chapter 11 in June 2025 and is currently in the final stages of its restructuring plan. A U.S. court confirmed the plan on September 8, 2025, clearing the way for the company to emerge from bankruptcy within weeks.
Wolfspeed bankruptcy and recovery
Initial filing: Wolfspeed, based in North Carolina, filed for Chapter 11 bankruptcy on June 30, 2025, to restructure its balance sheet and reduce debt. The move came after the company faced financial challenges from heavy spending on silicon carbide manufacturing and softening demand in key markets like electric vehicles.
Pre-negotiated plan: The company entered bankruptcy with a pre-arranged deal with its senior lenders. This plan allows the company to slash its debt by approximately 70%, or about $4.6 billion.
Court approval: On September 8, 2025, a U.S. bankruptcy court confirmed the plan, which will convert most debt into equity for its creditors.
Continued operations: Wolfspeed has continued to operate normally throughout the process and expects to emerge as a stronger, more financially flexible company.