Wolfspeed Stock Surges 27% on Debt Restructuring News
Wolfspeed shares skyrocketed 27% Monday as markets digested the chipmaker's imminent exit from Chapter 11 bankruptcy. The rally extends last week's gains following court approval of a reorganization plan that slashes $4.6 billion in debt—a 70% reduction—while cutting annual interest expenses by 60%.
Despite creditor support from 97% of senior note holders, fundamental challenges remain. The company's inconsistent execution and exposure to a slowing EV market cast doubt on its long-term prospects. While the cleaner balance sheet offers breathing room, Wolfspeed's ability to carve out sustainable market share remains uncertain.