Chipmaker Wolfspeed Nears Bankruptcy Deal With Lenders Including Apollo

Struggling chipmaker Wolfspeed Inc. will be taken over by creditors including Apollo Global Management Inc. under a proposal that would put it into bankruptcy just long enough to slash billions of dollars in debt, according to people familiar with the plan.

The company will soon announce a deal with lenders for a so-called prepackaged bankruptcy, said the people, 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 people.