Catenaa, Tuesday, September 09, 2025- Wolfspeed shares surged over 47% on Tuesday after it said a US court confirmed the chipmaker’s Chapter 11 reorganization plan, clearing the way to exit bankruptcy protection in the next several weeks.
Upon emergence from bankruptcy, the company expects to reduce its overall debt by about 70%, or nearly $4.6 billion, and cut its annual total cash interest payments by about 60%.
Wolfspeed makes chips using silicon carbide, which are more energy-efficient and used in applications that require huge amounts of power conversion, such as electric vehicles, solar inverters, and industrial power systems.
Approval by the US Bankruptcy Court for the Southern District of Texas “clears the path for us to complete our restructuring process in the coming weeks,” CEO Robert Feurle said in a statement on Monday.
Wolfspeed filed for Chapter 11 bankruptcy protection in June, more than a month after raising going concern doubts.
The company has faced heavy financial pressure in recent quarters as it expanded production and invested in silicon carbide, a material used in electric cars and clean energy systems.
Before restructuring, Wolfspeed carried about $6.5 billion in debt with limited cash available.
With its debt burden lowered, Wolfspeed plans to shift focus back to its growth opportunities in EVs and clean energy markets.
Still, investors will be watching closely to see how smoothly the company emerges from Chapter 11 and whether it can return to profitability amid ongoing competition and thin margins.
