05:36 AM EDT, 05/21/2025 (MT Newswires) -- Wolfspeed ( WOLF ) is preparing to file for bankruptcy in the coming weeks after rejecting creditor-led proposals to restructure its $6.5 billion in debt, The Wall Street Journal reported Tuesday, citing unnamed sources familiar with the matter.

The company is reportedly working on a prepackaged Chapter 11 plan backed by a majority of creditors, with legal and financial advice from Latham & Watkins, Perella Weinberg Partners, and FTI Consulting.

Wolfspeed's ( WOLF ) ability to refinance its 2026 convertible notes is tied to unlocking $750 million in Chips Act funding, which may be jeopardized by a bankruptcy filing, the media outlet reported.

The WSJ also said Wolfspeed ( WOLF ) signed a 10-year wafer supply deal with Renesas in 2023 in exchange for a $2 billion deposit, Renesas is now working with PJT Partners on its creditor position.

Wolfspeed ( WOLF ) did not immediately respond to MT Newswires' request for comment.

Shares of the company were down by more than 54% in recent Wednesday premarket activity.

(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)

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