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FTI Consulting handles the reorganization of Wolfspeed Inc. as the Durham, NC-based semiconductor company moves to slash its debt load.
Its restructuring support agreement reduces 70 percent ($4.6B) of its overall debt, and cuts annual interest payments by 60 percent.
The strengthened balance sheet puts Wolfspeed in the best position possible for the future, according to CEO Robert Feurle.
“A stronger financial foundation will enable us to focus acutely on innovation in rapidly scaling verticals undergoing electrification where quality, durability and efficiency matter most,” he said.
Wolfspeed expects to emerge from Chapter 11 by the end of the third quarter.
In May, Wolfspeed expressed concern over its financial viability due to weak demand, economic uncertainty and Trump’s tariff policies. It lost $949M on $560M net revenues for the nine-month period ended March.
FTI Consulting’s Rachel Chesley and Rose Temple represent Wolfspeed.
WPP has adopted a gloomier profit and sales forecast due to a deteriorating Q2 financial performance triggered by weak client spending as companies cope with the challenging economic backdrop.
Stagwell CEO Mark Penn reports Q1 revenues fell 2.7 percent to $651.8M, while its net loss rose from $1.3M to $2.9M.
WPP CEO Mark Read reported like-for-like revenues dropped 2.7 percent to $3.3B in Q1 due to the challenging business environment.
Interpublic suffered a $85.4M Q1 loss as net revenues declined 8.5 percent to $2B. It earned $110.4M in the year-ago period.
Omnicom CEO John Wren reported a 1.6 percent growth in Q1 revenues to $3.7B and a 5.5 percent dip in operating profit to $462.7M.
