Ropes & Gray LLP, a prominent global law firm, is currently advising the holders of approximately $2.4 billion in convertible notes issued by Wolfspeed, Inc. (NYSE: WOLF). This advisory role comes as the semiconductor leader navigates through a strategic chapter 11 restructuring. This move aims to streamline operations and solidify its financial foundation amidst a rapidly evolving tech landscape.

On September 8, the court endorsed Wolfspeed’s Plan of Reorganization, setting the stage for the company to exit bankruptcy shortly. This plan is pivotal as it proposes to slash approximately 70% of Wolfspeed’s existing debt. This significant reduction in liabilities is expected to bolster the company's capital structure substantially, thereby accelerating its long-term growth trajectory. Notably, the convertible noteholders represented by Ropes & Gray are set to take majority ownership. They have also agreed to support the issuance of $275 million in new second-lien convertible notes, injecting crucial capital that will aid in the company’s restructuring phase.

Wolfspeed's CEO, Robert Feurle, commented on the development, marking it as a transformative milestone for the company. "We are pleased to reach this important milestone, which clears the path for us to complete our restructuring process in the coming weeks. Strengthening our capital structure will help us to shape Wolfspeed into a leader in its industry," Feurle stated. He expressed gratitude towards the company's team, customers, vendors, and lenders for their unwavering support during this pivotal time.

The restructuring initiative has attracted a wide array of advisors. Alongside Ropes & Gray, Wolfspeed’s restructuring team includes legal counsel from Latham & Watkins and Hunton Andrews Kurth, financial advising by Perella Weinberg Partners, and consulting from FTI Consulting. The convertible debtholders have chosen Ropes & Gray and Ducera Partners for financial advisement.

Other key stakeholders such as the senior secured noteholders are represented by Paul, Weiss, Rifkind, Wharton & Garrison and Moelis & Company. Additionally, Renesas Electronics Corporation, another principal actor in the tech industry, is receiving counsel from Kirkland & Ellis, PJT Partners, and BofA Securities.

The team at Ropes & Gray leading this complex restructuring includes business restructuring partners Ryan Preston Dahl and Matt Roose. They are supported by a robust team specializing in finance, tax, M&A, employment, benefits, litigation, and enforcement practices.

Wolfspeed, Inc., headquartered in North Carolina, stands at the forefront of the silicon carbide semiconductors sector. The company is recognized globally as a pioneer in supplying advanced materials and power devices for sectors like electric vehicles, renewable energy, and various industrial applications. This restructuring is poised not only to stabilize Wolfspeed financially but also to reinforce its leadership in promoting efficient and sustainable power solutions across industries.