Wolfspeed nears bankruptcy deal with lenders including Apollo: Report

Wolfspeed will be taken over by creditors including Apollo Global Management under a proposal that would put the struggling chipmaker into bankruptcy, Bloomberg News reported on Wednesday, citing people familiar with the plan.

The company will soon announce a deal for a so-called prepackaged bankruptcy, that would be long enough to slash billions in debt, the report said. After a restructuring support agreement is signed, Wolfspeed will ask creditors to vote on the plan and then file for Chapter 11 bankruptcy protection.