why is WOLF "Stock Price Surged Significantly"

The stock price of Wolfspeed (WOLF) surged significantly on July 1, 2025, for several reasons:

1. Chapter 11 Bankruptcy Filing: Wolfspeed filed for Chapter 11 bankruptcy protection to restructure its debt. This move was anticipated and was part of the company's strategic plan to reduce its debt burden. The filing itself and the subsequent restructuring plan were met with market optimism, as they aimed to significantly reduce the company's debt and streamline its operations.
2. Debt Reduction: The company plans to cut approximately $4.6 billion in debt, which represents a substantial reduction in its total debt. This debt reduction is expected to have a positive impact on the company's financial health and could potentially free up resources for future growth.
3. Annual Cash Interest Payments: Wolfspeed expects to reduce its annual cash interest payments by approximately 60%. This reduction in interest payments could lead to improved cash flow and potentially increase the company's profitability.
4. Market Confidence: 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. Analysts are optimistic about the company's prospects after the restructuring.
5. Strategic Growth: The restructuring is expected to solidify Wolfspeed's market stature and direct focus toward strategic growth with the support of strong lender backing and advanced manufacturing capabilities.