Wolfspeed creditors extend rescue financing offer, FT reports

Creditors in U.S. chipmaker Wolfspeed (WOLF) offered roughly $600M to refinance a large convertible bond coming due in 2026, to pre-empt a potential bankruptcy filing, The Financial Times’ Sujeet Indap reports. The offer comes after Wolfspeed announced last week that it was considering a bankruptcy filing after negotiations to restructure the bond reached an impasse. Wolfspeed currently has $6.5B in total debt including a $1.5B senior secured loan held by a group led by Apollo (APO), and a bankruptcy could give Apollo and its co-investors an advantage in a court-supervised recapitalization, according to the report.