Wolfspeed exits Chapter 11, adopts fresh-start accounting under reorganization plan
WOLF•Cash recognition and common stock issued
$10 million of escrowed contingent cash was recognized in non-operating income when approvals arrived; total New Common Stock issued was 43,564,315.
Reorganization plan took effect and triggered fresh-start accounting
Wolfspeed’s prepackaged reorganization plan took effect Sept. 29, 2025, triggering fresh start accounting under ASC 852.
Regulatory approvals cleared equity issuance and instrument reclassifications
Regulatory approvals were secured Jan. 29, 2026, clearing Renesas equity issuance and shifting several instruments from liability to equity.
- 16,852,372 Renesas Base Consideration Shares were issued, extinguishing a $292.1 million Forward Equity Contract and increasing equity.
- Renesas Warrants were reclassified to equity at $31.5 million; the New Renesas 2L Convertible Notes conversion feature shifted at $87.9 million.
