Wolfspeed has filed for Chapter 11 Bankruptcy as part of its restructuring agreement with key lenders.

Wolfspeed filed for Chapter 11 bankruptcy Monday, June 30, a step in a previously-announced restructuring plan to reduce the company’s $6.7 billion in debt by 70%.

The 38-year-old Durham semiconductor supplier Wolfspeed filed for Chapter 11 bankruptcy Monday in Texas court, officially entering a reorganization effort the company says will enable it to eliminate billions in debt.