Silicon carbide component manufacturer Wolfspeed Inc. (NYSE: WOLF) is preparing to file for prepackaged Chapter 11 bankruptcy protection in the coming weeks.
A Wall Street Journal report said the move may have been to tackle the upcoming debt maturities that could affect its ability to secure up to $750 million in government funding under the 2022 Chips Act.
Citi downgraded Wolfspeed to ‘Sell’ from ‘Neutral’, flagging risks like the lack of guidance for the June quarter and management's failure to take questions during the third-quarter earnings call.
