June 25, 2025 /SemiMedia/ — Renesas Electronics said it has signed a Restructuring Support Agreement (RSA) with Wolfspeed and its primary creditors, as Wolfspeed prepares for court-supervised restructuring under Chapter 11 of the U.S. Bankruptcy Code. Renesas may record an impairment loss of up to ¥250 billion (approx. USD 1.7 billion) due to the revaluation of a previous deposit.

In 2023, Renesas committed a USD 2 billion deposit to Wolfspeed under a long-term silicon carbide (SiC) wafer supply agreement, later increased to USD 2.062 billion. Facing financial pressure, Wolfspeed disclosed in May 2025 that it may pursue an in-court restructuring and added going-concern language to its financial filings.

Under the new agreement, Renesas will convert its USD 2.062 billion deposit into a mix of Wolfspeed securities. This includes USD 204 million in convertible notes maturing in 2031, which would represent approximately 13.6% of Wolfspeed’s outstanding shares on a non-diluted basis, or 11.8% on a fully diluted basis. In addition, Renesas will acquire 38.7% of Wolfspeed’s common stock, equivalent to 17.9% on a fully diluted basis before warrant exercise, along with warrants representing a further 5% of the fully diluted share count.

Renesas expects the restructuring to close by the end of September 2025, pending court and regulatory approvals. If regulatory clearance is delayed, Renesas will hold instruments with equivalent economic rights until approvals are secured.

The company estimates a potential impairment loss of around ¥250 billion for the six months ending June 30, 2025. Final figures will be determined with its auditor and disclosed at a later date.