Wolfspeed Stock (WOLF) Trades Higher as Restructuring Completes

Wolfspeed, Inc. (NYSE:WOLF) has successfully emerged from Chapter 11 bankruptcy protection, marking a pivotal moment for the silicon carbide technology leader. The completion of its financial restructuring has significantly bolstered the company’s financial standing, triggering notable market activity.

Following the announcement, Wolfspeed's stock demonstrated marked volatility. The share price surged, reflecting investor optimism regarding the company's revitalized financial health. The stock experienced intraday highs of $25.98 following news of the restructuring completion before closing at $22.1, representing a substantial increase of $20.41, from the previous close. Looking a little deeper, and it is worth noting that this level of increase in share price does not directly correlate to gains for existing holders.

As part of the restructure, all of the previously issued shares of Wolfspeed were cancelled, and replaced with 0.008352 shares of new Wolfspeed shares. There is a potential uplift of 0.005568 of new shares for old if certain milestones are met by the company, which at best would deliver 0.013920 of new Wolfspeed shares for previous stockholders.

This equates to roughly 1 share of Wolfspeed ‘new' for every 71.84 of previously held shares if the milestone conditions are met.

The restructuring initiative saw Wolfspeed reduce its total debt by approximately 70%, translating to roughly $4.6 billion. Annual cash interest expenses have been lowered by about 60%. The company anticipates maintaining sufficient liquidity to continue providing its customers with leading silicon carbide solutions. With a business plan now self-funded through free cash flow generation, Wolfspeed is positioned to capitalize on its vertically-integrated 200mm manufacturing footprint. The company's supply chain, based in the U.S., is designed to be secure and scalable, supporting sustainable growth.

The U.S. bankruptcy court's prior approval of Wolfspeed's Chapter 11 reorganization plan served as a crucial step in the process. This legal milestone paved the way for the company to exit bankruptcy protection within weeks, enabling the implementation of its strategy to significantly reduce debt and interest expenses. The company voluntarily filed for Chapter 11 bankruptcy in June 2025 as part of a pre-packaged restructuring plan, addressing financial challenges stemming from economic uncertainties and softening demand. Throughout the Chapter 11 process, Wolfspeed maintained normal operations, continuing to supply silicon carbide materials and devices to customers and paying vendors as usual.

These types of restructures can be complicated to get your head around at first glance, with Wolfspeed filings a good place to start for more detail. With the stock now trading anew, and with bankruptcy in the rear view mirror, it will be interesting to see how markets treat the new WOLF on wall street.