Wolfspeed Stock Soars After Court Nod for Reorganization, Exit From Bankruptcy

Wolfspeed shares jumped more than 60% in pre-market trading after the company received court approval of its Plan of Reorganization and expects to emerge from Chapter 11 protection within the next several weeks.

The former SiC leader now anticipates reducing its debt by approximately 70%, positioning the company to better execute its strategic priorities with a renewed focus on innovation.

Court approval marks a fundamental financial transformation that can validate the rally and potentially extend it further. The reorganization delivers a 70% debt reduction—equivalent to eliminating $4.6 billion—along with a 60% cut in annual interest payments. Wolfspeed is expected to emerge from bankruptcy within weeks. This dramatic deleveraging reshapes the company’s cash flow profile just as the silicon carbide industry experiences rapid growth in electric vehicle adoption and renewable energy infrastructure. With its leadership position in SiC, Wolfspeed is poised to capture meaningful upside once financial constraints are lifted.

“We are pleased to reach this important milestone, which clears the path for us to complete our restructuring process in the coming weeks,” said Robert Feurle, Chief Executive Officer of Wolfspeed. “We believe that strengthening our capital structure will help us shape Wolfspeed into a leader in its industry, and we look forward to emerging with the financial flexibility to move swiftly on our strategic priorities and reinforce our leadership in silicon carbide. I would like to thank our talented team for their continued focus and hard work, our customers and vendors for their ongoing cooperation, and the lending group who supported our Plan of Reorganization.”

Wolfspeed is widely recognized as a leader in SiC chip production, which plays a crucial role in electric vehicles and next-generation power systems. While the company has endured several years of financial strain from heavy debt and market headwinds, its restructuring efforts are viewed as a path toward long-term recovery and renewed competitiveness.

In July, the company appointed Gregor van Issum as Chief Financial Officer, marking a critical milestone in its restructuring journey. This move has significantly improved its financial outlook and helped unwind prior bankruptcy concerns.

Additionally, the appointment of Dr. David Emerson as Chief Operating Officer in May signaled further commitment to a turnaround. Analysts see the refreshed executive team as a strong indication that Wolfspeed is serious about regaining its leadership position in silicon carbide.