Latest news with #bankruptcy
Yahoo
2 hours ago
- Business
- Yahoo
Wolfspeed nears bankruptcy deal with lenders including Apollo, Bloomberg News reports
(Reuters) -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. Shares of Wolfspeed, which makes chips using silicon carbide — a more energy-efficient material than traditional silicon, rose about 3% to $1.29 on Wednesday. The stock had fallen about 81% so far this year. Wolfspeed and Apollo did not immediately respond to Reuters requests for comment. The chipmaker raised going-concern doubts earlier in May, as deepening economic uncertainty stemming from changing U.S. trade policies, combined with weakening demand, triggered a series of financial challenges for the company. As of March, the company had about $1.33 billion in unrestricted cash, cash equivalents and short-term investments, and about $6.5 billion of debt obligations, it said in a regulatory filing in May. In a prepackaged bankruptcy, companies and their creditors agree on a reorganization plan prior to the bankruptcy filing and creditors even vote on the plan. Shareholders could recover as much as 5% in the proposed scenario, the report said. In a typical bankruptcy, shareholders are usually wiped out because creditors must be paid first, and there often is not enough value left for equity holders. In 2023, Wolfspeed announced $1.25 billion in debt financing led by Apollo, with the option to increase the total to as much as $2 billion to support the company's U.S. expansion plans.
The Independent
5 hours ago
- Business
- The Independent
Personal insolvencies 5% higher in May than same month of 2024, figures show
The number of people going financially insolvent across England and Wales in May was 5% higher than the same month in 2024, according to Insolvency Service figures. In May 2025, 10,014 people entered insolvency, including bankruptcies, debt relief orders (DROs) and individual voluntary arrangements (IVAs), a total which was broadly unchanged compared with 10,060 insolvencies in April 2025. The Insolvency Service said DRO numbers have remained similar to the record high levels seen over the past 12 months, with 3,783 cases recorded in May. The report said: 'DRO numbers have been at record high monthly numbers since the abolition of the upfront £90 fee in April 2024, with the 45,802 DROs in the past 12 months being nearly twice as high as the long-term annual average.' In June 2024, DRO eligibility was expanded. The debt threshold was increased from £30,000 to £50,000 and the allowable value of an exempt motor vehicle was increased from £2,000 to £4,000. IVA numbers this year so far have remained in line with monthly averages seen last year. The report added: 'The 5,583 IVAs registered in May 2025 was similar to April 2025 and 13% higher than in May 2024.' With 648 cases recorded, bankruptcy numbers were 4% higher than in May 2024, but remained at less than half of pre-2020 levels. In addition to the formal insolvencies, there were 7,805 'breathing space' registrations recorded under the Debt Respite Scheme in May 2025 – 2% higher than in May 2024. Of the breathing space registrations, 7,684 were standard breathing space registrations and 121 were mental health breathing space registrations. The scheme gives people with problem debt a period of protection from their creditors, enabling them to access professional debt advice, without the stress caused by spiralling debt and looming enforcement action. A standard breathing space gives people with problem debt legal protections from creditor action for up to 60 days. A mental health crisis breathing space is available to those receiving mental health crisis treatment. It lasts as long as the person's mental health crisis treatment, plus 30 days. Households faced various bill increases in April, putting an additional strain on some people's finances. The number of company insolvencies in England and Wales was 2,238 in May 2025 – a 15% jump compared with May 2024. Monthly company insolvency numbers in the first five months of 2025 were slightly higher than in 2024 and at a similar level to 2023, which saw a 30-year high annual number of insolvencies, the Insolvency Service said. The company insolvency rate remains much lower than the peak of 113.1 per 10,000 companies seen during the 2008-09 financial downturn, the report said, adding: 'This is because the number of companies on the effective register has more than doubled over this period.'
Yahoo
19 hours ago
- Business
- Yahoo
Elon Musk Warns US Faces 'De Facto' Bankruptcy If $37 Trillion Debt Not Tackled, Peter Schiff Says, 'We Are Already Bankrupt'
Benzinga and Yahoo Finance LLC may earn commission or revenue on some items through the links below. Billionaire entrepreneur Elon Musk is once again raising concerns regarding the U.S. fiscal outlook, warning of dire consequences as interest on Federal debt balloons to unsustainable levels. What Happened: On Tuesday, in a post on X, Musk warned that the United States was teetering on the edge of 'de facto bankruptcy' as federal debt surpasses $37 trillion, and interest payments on this debt now accounting for 25% of all tax revenue. Quoting a post by popular X account, Wall Street Mav, Musk says that 'if this continues,' then all tax revenues will eventually go toward servicing the national debt, with 'nothing left for anything else.' Trending: Maker of the $60,000 foldable home has 3 factory buildings, 600+ houses built, and big plans to solve housing — The quoted post highlights the gravity of the situation, stating that of the $5 trillion in total U.S. Government revenue, interest payments now account for $1.2 trillion, while the government continues to spend $7 trillion annually, resulting in persistent and ever-growing deficits. Economist Peter Schiff responded to Musk's post, saying that the U.S. is already bankrupt, and that it's 'just a matter of time before it's obvious to our creditors.' Schiff then warns that following this, 'interest rates will skyrocket to the point' where debt servicing costs will exceed total tax revenue. 'The Fed will unleash runaway inflation in an attempt to prevent that from happening,' Schiff said. Why It Matters: Last month, Deutsche Bank's Jim Reid warned that the U.S. faces 'death by a thousand cuts,' and gradual erosion of confidence if the fiscal situation is not rectified. Musk, who until recently headed the Trump administration's Department of Government Efficiency, or DOGE, called out the GOP's Budget Reconciliation Bill, for its tax cuts and 'massive, outrageous, pork-filled' spending package, referring to it as a 'disgusting abomination.' Recently, JPMorgan Chase & Co. (NYSE:JPM) CEO Jamie Dimon warned regulators and market participants of a looming dislocation, saying that 'You're going to see a crack in the bond market.' Read Next: Maximize saving for your retirement and cut down on taxes: Schedule your free call with a financial advisor to start your financial journey – no cost, no obligation. Arrived Home's Private Credit Fund's has historically paid an annualized dividend yield of 8.1%*, which provides access to a pool of short-term loans backed by residential real estate with just a $100 minimum. Photo courtesy: Joshua Sukoff / This article Elon Musk Warns US Faces 'De Facto' Bankruptcy If $37 Trillion Debt Not Tackled, Peter Schiff Says, 'We Are Already Bankrupt' originally appeared on Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
19 hours ago
- Business
- Yahoo
LeddarTech Received Notice from Nasdaq Regarding Delisting and Announces Filing under the Bankruptcy and Insolvency Act in Canada
QUEBEC CITY, June 19, 2025 (GLOBE NEWSWIRE) -- LeddarTech® Holdings Inc. ('LeddarTech' or the 'Company') (Nasdaq: LDTC), an AI-powered software company recognized for its innovation in advanced driver assistance systems (ADAS) and autonomous driving (AD), today announces that on June 17, 2025, the Company received a determination letter (the 'Determination Letter') from Nasdaq notifying the Company that Nasdaq has determined that, in accordance with its authority under Nasdaq Listing Rules 5101, 5110(b), and IM-5101-1, the Company's securities will be suspended from trading at the opening of business on June 24, 2025 and delisted from Nasdaq. Nasdaq based its determination upon concerns related to (i) the Company's announcement of its intention to file under the Bankruptcy and Insolvency Act (Canada) (the 'BIA') and the associated public interest concerns raised by such filing, (ii) the residual equity interest of the existing listed securities holders, and (iii) the Company's ability to sustain compliance with all requirements for continued listing on Nasdaq. The Determination Letter also advises the Company of its right to request an appeal of the determination. However, the Company currently does not intend to file an appeal of the determination. Accordingly, the Company expects that its securities will be suspended from trading at the opening of business on June 24, 2025 and delisted from Nasdaq after the completion of Nasdaq's filing of Form 25-NSE with the Securities and Exchange Commission. Filing under the BIA Further to its press release dated June 16, 2025, the Company announces having filed under the BIA on June 18, 2025. As a result of such filing, the board of directors of the Company has resigned effective as of such date. Additional information with respect to the BIA proceedings will be available in due course on Raymond Chabot Inc.'s website. About LeddarTech A global software company founded in 2007 and headquartered in Quebec City with additional R&D centers in Montreal and Tel Aviv, Israel, LeddarTech develops and provides comprehensive AI-based low-level sensor fusion and perception software solutions that enable the deployment of ADAS, autonomous driving (AD) and parking applications. LeddarTech's automotive-grade software applies advanced AI and computer vision algorithms to generate accurate 3D models of the environment to achieve better decision making and safer navigation. This high-performance, scalable, cost-effective technology is available to OEMs and Tier 1-2 suppliers to efficiently implement automotive and off- road vehicle ADAS solutions. LeddarTech is responsible for several remote-sensing innovations, with over 190 patent applications (112 granted) that enhance ADAS, AD and parking capabilities. Better awareness around the vehicle is critical in making global mobility safer, more efficient, sustainable and affordable: this is what drives LeddarTech to seek to become the most widely adopted sensor fusion and perception software solution. Additional information about LeddarTech is accessible at and on LinkedIn, Twitter (X), Facebook and YouTube. Forward-Looking Statements Certain statements contained in this Press Release may be considered forward-looking statements within the meaning of the U.S. Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended (which forward-looking statements also include forward-looking statements and forward-looking information within the meaning of applicable Canadian securities laws). Forward-looking statements generally include statements that are predictive in nature and depend upon or refer to future events or conditions, and include words such as 'may,' 'will,' 'should,' 'would,' 'expect,' 'anticipate,' 'plan,' 'likely,' 'believe,' 'estimate,' 'project,' 'intend' and other similar expressions among others. Forward-looking statements in this press release include, without limitation, statements regarding the BIA proceedings. Statements that are not historical facts are forward-looking statements. Forward-looking statements are based on current beliefs and assumptions that are subject to risks and uncertainties, including the risk factors as detailed from time to time in LeddarTech's reports filed with the U.S. Securities and Exchange Commission (the 'SEC'), including the risk factors contained in LeddarTech's Form 20-F filed with the SEC. The foregoing list of important factors is not exhaustive. Except as required by applicable law, LeddarTech does not undertake any obligation to revise or update any forward-looking statement, or to make any other forward-looking statements, whether as a result of new information, future events or otherwise. Leddar, LeddarTech, LeddarVision, LeddarSP, VAYADrive, VayaVision and related logos are trademarks or registered trademarks of LeddarTech Holdings Inc. and its subsidiaries. All other brands, product names and marks are or may be trademarks or registered trademarks used to identify products or services of their respective owners. LeddarTech Holdings Inc. is a public company listed on the Nasdaq under the ticker symbol 'LDTC.' CONTACT: Contact: reclamation-claims@
Yahoo
19 hours ago
- Business
- Yahoo
LeddarTech Announces Intention to File under the Bankruptcy and Insolvency Act in Canada
QUEBEC CITY, Canada, June 16, 2025 (GLOBE NEWSWIRE) -- LeddarTech® Holdings Inc. ('LeddarTech' or the 'Company') (Nasdaq: LDTC), an AI-powered software company recognized for its innovation in advanced driver assistance systems (ADAS) and autonomous driving (AD), today announces that, further to its press release dated June 11, 2025, it intends on making an assignment into bankruptcy pursuant to the Bankruptcy and Insolvency Act (Canada) (the 'BIA'). After careful consideration of all available alternatives, including undertaking a strategic review which was unsuccessful in identifying a suitable acquirer or commercial partner or raising sufficient capital, as well as further to the Company having received a notice of default under its bridge financing offer entered into with certain bridge lenders, the board of directors of the Company has determined that it was in the best interest of the Company and its stakeholders to make an assignment into bankruptcy under the BIA as soon as reasonably practicable. The Company expects that Raymond Chabot Inc., a licensed insolvency trustee, will be appointed as the trustee under the BIA proceedings. In connection with the BIA proceedings, each member of the board of directors of the Company will resign effective upon the assignment under the BIA. As was disclosed in its June 11, 2025 press release, the Company does not expect to resume active operations and cautions investors that there is significant risk that holders of our securities will receive little to no value under the BIA proceedings. Further announcements regarding the status of the Company's BIA proceedings will be made as developments warrant. Additional information with respect to the BIA proceedings will be available in due course on Raymond Chabot Inc.'s website. The Company expects that its common shares and warrants trading on the Nasdaq will be halted as a result of the BIA proceedings. The Company anticipates that it will ultimately be delisted from the Nasdaq. About LeddarTech A global software company founded in 2007 and headquartered in Quebec City with additional R&D centers in Montreal and Tel Aviv, Israel, LeddarTech develops and provides comprehensive AI-based low-level sensor fusion and perception software solutions that enable the deployment of ADAS, autonomous driving (AD) and parking applications. LeddarTech's automotive-grade software applies advanced AI and computer vision algorithms to generate accurate 3D models of the environment to achieve better decision making and safer navigation. This high-performance, scalable, cost-effective technology is available to OEMs and Tier 1-2 suppliers to efficiently implement automotive and off- road vehicle ADAS solutions. LeddarTech is responsible for several remote-sensing innovations, with over 190 patent applications (112 granted) that enhance ADAS, AD and parking capabilities. Better awareness around the vehicle is critical in making global mobility safer, more efficient, sustainable and affordable: this is what drives LeddarTech to seek to become the most widely adopted sensor fusion and perception software solution. Additional information about LeddarTech is accessible at and on LinkedIn, Twitter (X), Facebook and YouTube. Forward-Looking Statements Certain statements contained in this Press Release may be considered forward-looking statements within the meaning of the U.S. Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended (which forward-looking statements also include forward-looking statements and forward-looking information within the meaning of applicable Canadian securities laws). Forward-looking statements generally include statements that are predictive in nature and depend upon or refer to future events or conditions, and include words such as 'may,' 'will,' 'should,' 'would,' 'expect,' 'anticipate,' 'plan,' 'likely,' 'believe,' 'estimate,' 'project,' 'intend' and other similar expressions among others. Forward-looking statements in this press release include, without limitation, statements regarding the issuance of cease trade orders, the BIA proceedings, and the potential for shareholder value recovery. Statements that are not historical facts are forward-looking statements. Forward-looking statements are based on current beliefs and assumptions that are subject to risks and uncertainties, including the risk factors as detailed from time to time in LeddarTech's reports filed with the U.S. Securities and Exchange Commission (the 'SEC'), including the risk factors contained in LeddarTech's Form 20-F filed with the SEC. The foregoing list of important factors is not exhaustive. Except as required by applicable law, LeddarTech does not undertake any obligation to revise or update any forward-looking statement, or to make any other forward-looking statements, whether as a result of new information, future events or otherwise. Contact:Chris Stewart, Chief Financial Officer, LeddarTech Holdings + 1-514-427-0858, Investor relations website: Leddar, LeddarTech, LeddarVision, LeddarSP, VAYADrive, VayaVision and related logos are trademarks or registered trademarks of LeddarTech Holdings Inc. and its subsidiaries. All other brands, product names and marks are or may be trademarks or registered trademarks used to identify products or services of their respective owners. LeddarTech Holdings Inc. is a public company listed on the Nasdaq under the ticker symbol 'LDTC.'Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
