June 22 (Reuters) - Wolfspeed ( WOLF ) plans to file for

bankruptcy in the United States under a restructuring agreement

with creditors, which would provide it with fresh financing and

slash debt by nearly 70%, the struggling chipmaker said on

Sunday.

Wolfspeed ( WOLF ) raised going-concern doubts in May, as

deepening economic uncertainty stemming from changing U.S. trade

policies, combined with weakening demand, triggered a series of

financial challenges.

The restructuring agreement, reached with creditors and

Renesas Electronics' ( RNECF ) U.S. subsidiary, would result in

$275 million in fresh financing backed by some existing

creditors and help reduce debt by $4.6 billion, Wolfspeed ( WOLF ) said

in a statement.

Wolfspeed ( WOLF ) plans to seek approval on its pre-packaged plan

and subsequently emerge out of bankruptcy by the end of third

quarter of the calendar year 2025.

In a prepackaged bankruptcy, companies and their creditors

agree on a reorganization plan prior to the bankruptcy filing

and creditors vote on the plan.

The company intends to continue regular operations

throughout the restructuring process.

As of March, it had about $1.33 billion in cash, and about

$6.5 billion of debt obligations.

Last week, Bloomberg News reported about the firm's plans to

file for a prepackaged bankruptcy. The report said that

Wolfspeed ( WOLF ) would be taken over by creditors, including Apollo

Global Management ( APO ).

In 2023, Wolfspeed ( WOLF ) announced $1.25 billion in debt financing

led by Apollo, with the option to increase the total to as much

as $2 billion to support its U.S. expansion.

The firm has undergone a series of leadership changes in the

last few months, appointing industry veteran Robert Feurle as

its CEO in March and David Emerson as COO in May after

announcing in May that it will cut its senior leadership team by

30%.

(Reporting by Rhea Rose Abraham and Kanjyik Ghosh in Bengaluru;

Editing by Rashmi Aich and Mrigank Dhaniwala)