Wolfspeed Emerges from Chapter 11 with Restructured Balance Sheet, Shares Surge 48%

Wolfspeed (WOLF) shares skyrocketed as much as 54% after the silicon carbide chipmaker completed its court-supervised restructuring and exited Chapter 11 bankruptcy protection. The company's debt load was slashed by 70%, with maturities extended to 2023 and annual cash interest expenses reduced by 60%—alleviating liquidity pressures that had hampered operations.

The restructuring canceled legacy common stock and issued new shares primarily to creditors, resulting in a smaller public float. This tighter share structure amplified today's price movement on heavy trading volume. Investors are now betting on Wolfspeed's ability to execute its silicon carbide expansion strategy as demand recovers in electric vehicle, industrial, and energy markets.

While the balance sheet reset provides a fresh start, legacy shareholders faced severe dilution. The company must now prove it can capitalize on its technological niche amid evolving semiconductor demand.