TLDR
- Wolfspeed completed its Chapter 11 bankruptcy emergence on September 29, 2025, moving its incorporation from North Carolina to Delaware
- The restructuring will reduce Wolfspeed’s debt by 70%, from $6.5 billion to $2 billion, and cut annual interest payments by approximately 60%
- Current shareholders will only receive 3-5% of the new equity, with creditors taking majority ownership in a reorganization that causes substantial dilution
- Trading of the “old” Wolfspeed common stock was suspended on the NYSE on September 29, with official delisting scheduled for October 10, 2025
- The stock initially surged as much as 1,450% following the restructuring announcement before settling around 1,137% gains at $14.97
Wolfspeed officially emerged from Chapter 11 bankruptcy on September 29, 2025. The company completed its court-approved reorganization plan.
Trading of the semiconductor manufacturer’s shares was halted multiple times during Monday morning. The extreme volatility came as the restructuring details became public.
The company filed a Form 25 with the Securities and Exchange Commission on Monday. The filing confirmed the reincorporation from North Carolina to Delaware.
Current shareholders will receive new common stock in the reorganized entity. However, they will only get a fraction of what they previously held.
The restructuring plan creates substantial dilution for existing equity holders. Current shareholders will receive just 3-5% of the new company’s equity.
Creditors will take majority ownership of the reorganized Wolfspeed. This represents a standard Chapter 11 outcome for heavily indebted companies.
Debt Reduction Details
The court-approved plan cuts Wolfspeed’s total debt by 70%. The company’s obligations will drop from $6.5 billion to $2 billion.
Annual interest payments will decrease by about 60%. This provides the company with breathing room for its operations.
The New York Stock Exchange suspended trading of the old common stock on Monday. The suspension occurred at approximately 11 a.m. EST.
The old Wolfspeed shares will be officially delisted on October 10, 2025. Shareholders will then hold only the new Delaware-incorporated stock.
Trading Activity and Price Movement
Wolfspeed shares surged as much as 1,450% during Monday’s trading session. The stock later settled around 1,137% gains.
Shares reached $14.97 during the dramatic price swing. The movement triggered several trading halts throughout the morning.
The company filed Form T-3 and Form T-1 applications with the SEC. These documents relate to the qualification of indentures for the reorganized company.
The SEC ordered that these applications would become effective at 10:00 a.m. on September 29, 2025. This timing aligned with the company’s emergence from bankruptcy.
Speculative trading drove much of the price movement. Investors reacted to the debt reduction announcement.
The massive percentage gain reflected the heavily reduced share count. The reverse split mechanics contributed to the eye-catching numbers.
Holders of the old common stock received their proportional shares of the new entity. The exchange ratio reflected the 3-5% equity allocation for previous shareholders.
