Core Viewpoint - Wolfspeed, a US silicon carbide company, is preparing to file for bankruptcy, which has led to a significant drop in its stock price by 30.14% on June 18. The company is expected to enter a pre-packaged bankruptcy process to reduce its substantial debt burden of approximately $6.5 billion while allowing shareholders to potentially recover up to 5% of their equity value [2][3]. Financial Performance - For the first fiscal quarter of 2025, Wolfspeed reported a revenue decline of 1.37% year-over-year, totaling $195 million, with a net loss of $282 million [3]. - As of March 31, Wolfspeed had approximately $1.33 billion in unrestricted cash and cash equivalents, alongside short-term investments, while facing a debt load of about $6.5 billion [2]. Restructuring Plans - In response to financial pressures, Wolfspeed has initiated a $450 million facility closure and consolidation plan, which includes shutting down its 150mm silicon carbide plant in Durham, North Carolina, and laying off around 20% of its workforce, equating to approximately 1,000 jobs [3].