TLDR
- Wolfspeed completed its Chapter 11 bankruptcy restructuring and officially exited bankruptcy protection on Monday
- The company cut total debt by approximately 70% and reduced annual cash interest expenses by roughly 60%
- Shares jumped 23% in premarket trading Tuesday and closed up 10.50% following the bankruptcy exit announcement
- Wolfspeed issued new shares that replaced old stock at an exchange ratio of 0.008352, heavily diluting existing shareholders
- The company maintains operations supplying silicon carbide chips for electric vehicles and industrial power systems
Wolfspeed announced late Monday that it has completed its financial restructuring. The company officially exited Chapter 11 bankruptcy protection.
Shares responded quickly to the news. The stock surged 23% in premarket trading Tuesday to $27.12.
The bankruptcy exit marks the end of a process that began in June. Wolfspeed filed for Chapter 11 protection in the U.S. Bankruptcy Court for the Southern District of Texas.
The restructuring delivered substantial financial relief. Total debt dropped by approximately 70%.
Annual cash interest expenses fell by roughly 60%. These reductions give the company more breathing room.
CEO Robert Feurle expressed optimism about the path forward. “As we enter this new era, we do so with much improved financial stability,” he said.
The company highlighted its manufacturing capabilities. Wolfspeed operates a scaled, greenfield and vertically integrated 200 mm facility footprint.
Major capital deployment is now behind the company. This positions Wolfspeed to focus on operations rather than infrastructure spending.
The company supplies silicon carbide chips. These energy-efficient semiconductors serve electric vehicle and industrial power system markets.
New Share Structure Hits Old Investors
The bankruptcy exit came with a cost for existing shareholders. Wolfspeed issued new shares under the same WOLF ticker symbol.
All previously issued stock was canceled. Existing shareholders received their pro rata share of 1.3 million new common shares.
The exchange ratio stood at 0.008352. This translates to massive dilution for anyone holding the old stock.
For every 1,000 shares of old Wolfspeed stock, shareholders received about 8.35 new shares. That’s a haircut of more than 99%.
Market Response and Volatility
Trading showed strong interest following the announcement. Shares closed Tuesday up 10.50% from the previous session.
The stock has seen wild swings throughout 2025. Year-to-date price performance sits at 233.33%.
Average trading volume reached 57,626,362 shares. This reflects heightened investor attention around the restructuring.
Current market capitalization stands at $3.46 billion. The technical sentiment signal from analysts shows “Strong Sell.”
Market watchers remain cautious despite the debt reduction. Analysts point to ongoing financial challenges that could create short-term volatility.
The company emphasized it maintains “ample liquidity” to continue operations. Customer supply chains for silicon carbide chips remain active.
Wolfspeed issued new shares on Monday as part of the bankruptcy exit process. The company continues to operate under the WOLF ticker symbol on public markets.
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