Wolfspeed Surges 24% as Court Approves Restructuring Plan
Approval paves the way for the silicon carbide maker to exit Chapter 11 bankruptcy, slashing debt by nearly 70%.
Shares of Wolfspeed (WOLF) skyrocketed nearly 24% on massive trading volume after the silicon carbide technology firm received court approval for its reorganization plan. The decision clears a critical hurdle for the company to emerge from Chapter 11 bankruptcy, a move expected to significantly stabilize its financial foundation.
The restructuring, , is set to be transformative for Wolfspeed's balance sheet. The company anticipates slashing its total debt by approximately 70% and reducing its annual cash interest expenses by around 60%. This deleveraging is a crucial step for the company, which filed for bankruptcy protection in June 2025 amid financial pressures.
In a statement following the court's decision, CEO Robert Feurle expressed optimism, noting that the milestone 'clears the path for us to complete our restructuring process.' He emphasized that the strengthened capital structure would provide the financial flexibility needed to advance Wolfspeed's strategic priorities and reinforce its leadership position in the competitive silicon carbide market.
The , with the stock experiencing its best trading session in recent history. The surge reflects renewed confidence that a leaner, financially healthier Wolfspeed can better navigate its industry, a key supplier to the electric vehicle (EV) market and other advanced technology sectors.
Despite the positive development, . The company still faces significant execution hurdles and operates within a pressured EV market, which could impact future demand for its specialty chips. However, with an enterprise value projected to be between $2.35 billion and $2.85 billion upon exiting Chapter 11, Wolfspeed is positioning itself for a strategic comeback.