July 1 - Wolfspeed (WOLF, Financial) shares jumped more than 85% in pre‑market trading on Tuesday after the chipmaker said it would seek Chapter 11 protection.
The company plans to use a creditor‑backed reorganization to cut roughly $4.6 billion of debt and streamline operations.
Under the plan, Wolfspeed expects to emerge from bankruptcy by the end of the third quarter, subject to court approval and creditor support.
Creditors representing a majority of its obligations have backed the debt reduction proposal, the filing shows.
Investors reacted sharply to the news, driving the stock to its biggest one‑day gain since the company went public. The move underscores market optimism that the restructuring will bolster Wolfspeed's balance sheet and free up resources for growth.
Analysts say the rapid share rally reflects confidence in the plan's ability to strengthen the company's financial footing and position it for future capital investments.
Wolfspeed's next steps will include seeking court confirmation for the reorganization and mapping out post‑bankruptcy strategies, marking a critical juncture for the power‑semiconductor specialist.
