Stock of Wolfspeed (WOLF) surges after bankruptcy filing

by MarketNewsData

Key Points:

  • Filed for Chapter 11 bankruptcy on June 30
  • Aims to cut $4.6 billion in debt (~70% reduction)
  • Stock closed at $2.31, up +95.76%
  • Pre-market (5:16 AM EDT): $2.65, up +14.50%
  • Volume already at 3.97 million shares
  • New CFO, Gregor van Issum, to lead financial turnaround
  • Targeting bankruptcy exit by Q3 2025

Wolfspeed (NYSE: WOLF) continues its dramatic rebound after filing for Chapter 11 bankruptcy. On Monday, the stock closed at $2.31, gaining nearly 96%. In pre-market trading Tuesday (as of 5:16 AM EDT), it added another 14.5%, rising to $2.65 on heavy volume of nearly 4 million shares.

The rally comes as investors digest Wolfspeed’s aggressive restructuring plan. The company intends to eliminate approximately $4.6 billion in debt, cutting annual interest costs by 60%. Despite filing for bankruptcy, Wolfspeed has secured $275 million in interim financing and continues normal operations.

A significant confidence boost came with the appointment of Gregor van Issum as Chief Financial Officer, effective September 1. Known for corporate turnarounds, van Issum is expected to steer the company through the restructuring and beyond.

Outlook:
Wolfspeed is aiming to emerge from bankruptcy by the end of Q3 2025, with a leaner balance sheet and renewed operational focus. While investor optimism is reflected in the stock’s surge, questions remain about equity dilution and execution risks. The coming weeks will be key in determining whether this is a sustainable turnaround or a temporary spike.

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