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Prepackaged Chapter 11 Cases | 3 Months Ended
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Sep. 28, 2025
Reorganizations [Abstract] |
Prepackaged Chapter 11 Cases | Prepackaged Chapter 11 Cases Liabilities subject to compromise As discussed in Note 1, "Basis of Presentation and New Accounting Standards," from the Petition Date to the Effective Date, the Company operated as a debtor in possession under the Bankruptcy Court. Liabilities subject to compromise on the accompanying unaudited consolidated balance sheet reflect the expected allowed amount of the pre-petition claims that are not fully secured and that have at least a possibility of not being repaid at the full claim amount. Liabilities subject to compromise at September 28, 2025, consisted of the following:
|  | Three Months Ended
(in millions of U.S. Dollars) |  | September 28 2025
Debt |  | $7,081.4 |
Finance lease liabilities |  | 0.6 |
Other current liabilities |  | 26.0 |
Finance lease liabilities - long term |  | 8.3 |
Other long-term liabilities |  | 199.0 |
Total liabilities subject to compromise |  | $7,315.3 |
Reorganization items, net Reorganization items incurred as a result of the Chapter 11 Cases are presented separately in the accompanying unaudited consolidated statement of operations for the three months ended September 28, 2025, and were as follows:
|  | Three Months Ended
(in millions of U.S. Dollars) |  | September 28, 2025
Allowed claims adjustments (1) |  | $475.7 |
Professional fees |  | 28.1 |
Total reorganization items, net |  | $503.8 |
(1) For the three months ended September 28, 2025, the Plan and related disclosure statement were filed with the Bankruptcy Court, which included, among other things, the estimated allowed claims with respect to outstanding debt obligations. As a result, the unsecured and potentially undersecured debt obligations as of September 28, 2025 were adjusted to equal the expected amount of the allowed claim as detailed in the Plan, resulting in an adjustment of approximately $437.3 million to Liabilities subject to compromise and a corresponding expense recognized within Reorganization items, net in the Consolidated Statements of Operations. Additionally, adequate protection payments were $38.4 million and recognized as a reduction to the carrying amount of the respective Senior Secured Notes. Concurrently, as a result of adjusting to the estimated allowed claim amount for the corresponding debt instruments, a charge was recognized within Reorganization items, net. Please refer to Note 10, "Long-term Debt" for additional information.
Professional fees included in reorganization items, net represent fees for post-petition expenses related to the Chapter 11 Cases. As of September 28, 2025, $17.6 million of professional fees were unpaid and accrued in accounts payable and accrued expenses on the accompanying unaudited consolidated balance sheet. As of September 28, 2025, approximately $10 million of restricted cash was held in a dedicated professional fee funding account, presented within "Cash and cash equivalents" on the Consolidated Balance Sheets. Condensed Combined Debtors Financial Statements With the exception of Wolfspeed Texas, LLC, none of the Company's subsidiaries were debtors under the Chapter 11 Cases. However, condensed combined financial statements of the Debtors are not presented in the notes to the consolidated financial statements as the assets and liabilities, operating results and cash flows of the non-debtor entities included in the consolidated financial statements are insignificant and, therefore, the consolidated financial statements presented herein materially represent the condensed combined financial statements of the debtor entities for all periods presented. Non-debtor entity intercompany balances from/due to the Debtors at the end of the period are not presented as they are insignificant and, therefore, not material to our unaudited condensed combined financial statements.

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- Definition The entire disclosure for the description and amounts of reorganization under Chapter 11 of the US Bankruptcy Code. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 852 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 7 -Subparagraph (c) -Publisher FASB -URI https://asc.fasb.org/1943274/2147481404/852-10-50-7 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 852 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 7 -Subparagraph (c)(1) -Publisher FASB -URI https://asc.fasb.org/1943274/2147481404/852-10-50-7 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Topic 852 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 7 -Subparagraph (c)(2) -Publisher FASB -URI https://asc.fasb.org/1943274/2147481404/852-10-50-7 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Topic 852 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 7 -Subparagraph (c)(3) -Publisher FASB -URI https://asc.fasb.org/1943274/2147481404/852-10-50-7 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Topic 852 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org/1943274/2147481404/852-10-50-2 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Topic 852 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/852/tableOfContent + Details
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