Wolfspeed Inc (NYSE:WOLF) shares are surging on Thursday following the company’s announcement on Monday that it has initiated a pre-packaged Chapter 11 bankruptcy filing.

What To Know: The semiconductor company, a leader in silicon carbide technology, is pursuing a strategic restructuring to significantly strengthen its financial position.

The restructuring plan, backed by a substantial majority of its lenders, including over 97% of senior secured noteholders and a subsidiary of Renesas Electronics Corporation, is designed to slash the company’s debt by approximately $4.6 billion, a reduction of about 70%. Wolfspeed also anticipates a 60% decrease in its annual cash interest payments upon emerging from the process.

The company has emphasized that it will continue to operate as usual, delivering its silicon carbide materials and devices to customers without interruption. Wolfspeed expects to complete the restructuring and emerge from Chapter 11 by the end of the third quarter of 2025.

Price Action: According to data from Benzinga Pro, WOLF shares are trading higher by 52.0% to $1.75 Thursday afternoon. The stock has a 52-week high of $25.49 and a 52-week low of $0.39.

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