- Chapter 11 Filing & Debt Cut: Wolfspeed filed for Chapter 11 on June 30, 2025 to implement a creditor-backed reorganization plan. The plan will slash its debt by ~70% (from about $6.5 billion to ~$2.0 billion) and cut annual cash interest by ~60% [1].
- Bankruptcy Plan Approved (Sept 8): On Sept 8, 2025, a U.S. bankruptcy court confirmed Wolfspeed’s plan. CEO Robert Feurle hailed this as an “important milestone” that clears the path to emerge stronger and “reinforce our leadership in silicon carbide”.
- Share Exchange (Sept 29): On Sep 29, Wolfspeed executed the restructuring: all existing common shares were cancelled and exchanged for new stock. Existing shareholders received 1,306,903 new shares at an exchange ratio of ~0.008352 (roughly 1 new for 120 old). An additional 871,287 contingent shares (totaling 2,178,190) will be issued only if certain regulatory milestones are met before a deadline. In practice, this is a massive reverse split/recapsule of equity.
- Stock Split & Listing Changes: Simultaneously, Wolfspeed moved its legal domicile from North Carolina to Delaware and executed a reverse stock split. Trading of the “old” common shares was halted on Sept 29, and the old shares are set to be delisted (with new shares listing thereafter) [2]. This resulted in temporary trading suspensions on Sept 29 due to the corporate action [3].
- Stock Surge on Sep 29: On Sep 29, WOLF shares exploded intraday. Reports indicate the price spiked as high as $19.80 (a more than 1,137% increase from the prior close of ~$1.21) [4]. Benzinga noted shares hit ~$14.97 by midday (∼+1,137%), and trading was halted repeatedly for volatility. By late Monday, WOLF was trading in the double-digits on huge volume. (For context, the stock had traded under $2 in prior weeks.)
- Corporate Updates: In addition to the restructuring, Wolfspeed announced key leadership and technology moves. Gregor van Issum was appointed Chief Financial Officer effective Sept 1, 2025 (bringing ~20+ years of semiconductor experience) [5]. The company also ramped production of larger (200 mm) silicon-carbide wafers, signaling its pivot to next‑gen power semiconductor technology.
Stock Performance (Sep 29, 2025 & Recent)
Wolfspeed’s share price was relatively stable (around $1–$2) in early September after its Chapter 11 filing in June. On Sept 9, shares jumped ~48% to $1.82 when the court confirmed the reorganization plan. After trading near that level for weeks, Sep 29 brought unprecedented volatility. Speculation and heavy buying drove WOLF sharply higher: by late morning, shares were up over 1,100%. Benzinga reported WOLF trading around $14.97 (about +1,137%) by midday, and market data show an intraday high near $19.80. Several volatility halts (LULD pauses) occurred as the NYSE managed the extreme moves [6]. MarketBeat notes that by the close (3:53 PM), WOLF settled around $21.62 (up +1,686%), reflecting how dramatically sentiment swung. (These huge gains reflect the “old” stock trading pending delisting; in the reorganized company, share counts will reset.) In short, Wolfspeed moved from a sub‑$2 penny stock to double‑digit territory on Sep 29, driven entirely by the restructuring news.
Recent News Summary
- Sept 29 – Share Cancellation & New Stock: Wolfspeed filed an SEC Form 8-K confirming all old common shares were cancelled and exchanged for the new shares. Investing.com notes existing shareholders got 1,306,903 new shares and the potential extra 871,287 if milestones are met. During this action, trading was briefly halted as the company reincorporated in Delaware (reverse split) and applied for regulatory approvals on the new securities. Media outlets (Benzinga, Economic Times, etc.) reported the stock surge and explained that old WOLF shares would soon be delisted (Oct 10) and replaced by new common stock in the reorganized company [7] [8]. The consensus report is that current owners will receive only ~3–5% of the new equity (creditors take the balance) [9].
- Sept 8 – Plan Confirmed: Prior to this, on Sept 8 Wolfspeed announced (via BusinessWire) that the court approved its reorganization plan, allowing it to emerge from Chapter 11 “in the next several weeks”. This news alone had lifted the stock ~48% earlier. Management emphasized that reducing debt ~70% would “better position the company” to focus on innovation and solidify its leadership in SiC.
- CFO Appointment: On Sept 1, Wolfspeed announced Gregor van Issum as its new CFO, replacing the interim CFO. (Van Issum has 20+ years in semiconductors [10].) This leadership change was part of preparations for emerging from bankruptcy.
- Product Development: The company also marked a milestone by beginning commercial production of 200 mm silicon-carbide wafers. This fits Wolfspeed’s strategy to transition from legacy silicon to SiC (used in EVs, power grids, etc.). News of the SiC wafer rollout contributed to earlier optimistic trading – Wolfspeed shares had jumped ~13% on a wafer announcement in mid-September (per GuruFocus) – but that was minor compared to the bankruptcy news.
Analyst Commentary & Quotes
Wolfspeed’s management and analysts have highlighted both the positive restructuring steps and the remaining challenges. CEO Robert Feurle said in the Sept 8 press release that approval of the plan “clears the path” to complete restructuring and gives Wolfspeed “financial flexibility” to pursue its strategic priorities. On the other hand, market analysts have been cautious. For example, TipRanks notes Wolfspeed’s financials are weak (declining revenues, huge losses and debt) and its valuation metrics (negative P/E, no dividend) are unattractive. As of Sept 29, the TipRanks consensus was Hold with a $2.00 price target, and its AI-driven “Spark” model rated WOLF Neutral. Investing.com’s consensus (polling several analysts) was also neutral, with an average 12-month target of only ~$3.17 (implying an ~85% downside from pre-spike prices). In short, experts emphasize that despite the debt reduction, Wolfspeed’s equity is heavily diluted and profitability is far off.
Forecasts & Market Sentiment
The extreme price swings reflect highly speculative sentiment. Short-term, traders are focusing on the mechanics of the restructuring (share conversion, debt cut, potential catalysts). Many have piled into WOLF as a “binary” bet on the reorganization’s completion; for example, short-interest was very high going into the event (~28% of float [11]), setting the stage for a short squeeze. Technical models had even rated WOLF a strong sell before the news, underscoring how far prices had been from fundamentals. In the long term, sentiment depends on Wolfspeed’s ability to restart growth post-bankruptcy. Management projects that by 2030 the SiC chip market will expand dramatically; if Wolfspeed can capitalize, there is upside. However, analysts caution current shareholders will only own a sliver of the “new” company (~3–5% as reported) [12]. Combined with the company’s ongoing losses and global semiconductor cyclicality, most forecasters remain cautious. As one summary notes, Wolfspeed’s restructuring “de-risks the balance sheet” but equity holders should be wary given “significant financial challenges”. Overall, the near-term outlook is uncertain – further volatility is likely – while the longer-term trajectory hinges on Wolfspeed executing its turnaround and riding the broader EV/SiC boom.
Industry & Silicon Carbide Trends
Wolfspeed operates in the wide‑bandgap semiconductor sector (silicon carbide and GaN), which is closely tied to electric vehicles (EVs), renewable energy, and power infrastructure. EV adoption is forecast to accelerate (e.g. McKinsey projects EV sales quadrupling by 2030), driving demand for SiC in power inverters and chargers. In fact, the global SiC device market is only about $2 billion today but is expected to reach $11–$14 billion by 2030 (≈26% CAGR). Wolfspeed is a pioneer in this niche, but it faces stiff competition: major chipmakers are also ramping SiC capacity. For example, STMicroelectronics – the other dominant SiC wafer producer – reported a revenue drop in 2024 but emphasized that it is “positioning ourselves for long-term growth through investments in silicon carbide technologies”. Likewise, companies like NXP and Infineon have highlighted future automotive electrification as a tailwind despite near-term chip demand weakness. In summary, Wolfspeed’s fortunes are linked to two trends: (1) the secular growth of EVs and green power (which favors SiC chips), and (2) the capital intensity and consolidation of the semiconductor industry. Any delay or slowdown in EV rollouts (as seen mid-2024) can temper demand, while Wolfspeed’s competitors expand their SiC footprint.
Sources: Official filings and press releases, Reuters and Bloomberg coverage, market data sites, and industry reports. Key sources include Wolfspeed’s own investor releases [13], Reuters/Bloomberg news [14], and analysis from Benzinga, Economic Times, GuruFocus, Investing.com, and others [15]. All figures and quotations above are drawn from these cited sources.
References
1. m.economictimes.com, 2. m.economictimes.com, 3. m.economictimes.com, 4. m.economictimes.com, 5. www.investing.com, 6. m.economictimes.com, 7. m.economictimes.com, 8. www.benzinga.com, 9. m.economictimes.com, 10. www.investing.com, 11. www.marketbeat.com, 12. m.economictimes.com, 13. m.economictimes.com, 14. www.bloomberg.com, 15. m.economictimes.com
