UTICA, N.Y. (WKTV) — As expected,Wolfspeedannounced it has filed Chapter 11 bankruptcy.
By filing, the company is looking to cut its debt by almost 70%, which is approximately $4.6 billion.
The company, based in North Carolina, has the plant in Marcy, and expects to emerge from bankruptcy in the third quarter of this year.
Wolfspeed’s total debt has reached $6.67 billion.
The company plans to continue to pay vendors in the ordinary course of business for goods and services delivered throughout the restructuring process via an All-Trade Motion.
Following the news of the Chapter 11 filing, shares of the company rose 64.5% in extended trading.
For more NEWSChannel 2 coverage of Wolfspeed, click on the linked stories below.
Dr. John Edmond told NEWSChannel 2 that Wolfspeed, the company he co-founded, will keep its Marcy manufacturing plant open as the company prepares to file for bankruptcy.
Wolfspeed has announced that it will be filing for Chapter 11 bankruptcy in the near future as part of a restructuring support agreement.
A report indicating that Wolfspeed laid off part of its workforce at a North Carolina facility has been verified by the company.
“I had some angst when I saw it, but I also realized that the company is going through a lot of transition,” said Shawna Papale, president of Mohawk Valley EDGE, about rumors of Wolfspeed bankruptcy.
Just a few days after the announcement that Wolfspeed could file for bankruptcy, the chip fabrication company has revealed the appointment of a new executive vice president and chief operating officer.
Oneida County Executive Anthony Picente reacted to the news of a possible bankruptcy filing by Wolfspeed in the coming weeks.
Shares of Wolfspeed Inc. dropped by over 60% on Wednesday.
