[WASHINGTON] Struggling chipmaker Wolfspeed will be taken over by creditors including Apollo Global Management under a proposal that would put it into bankruptcy just long enough to slash billions of US dollars in debt, according to sources familiar with the plan.
The company will soon announce a deal with lenders for a so-called prepackaged bankruptcy, said the sources, who asked not to be named because the information is private. In the weeks after that restructuring support agreement is signed, Wolfspeed would ask creditors to vote on the deal and then file a Chapter 11 case, according to one of the sources.
US bankruptcy rules allow firms to round up votes before filing an insolvency case. If enough creditors vote in favour, the…
