Wolfspeed Inc (NYSE:WOLF) shares were trading flat at $1.72 Thursday afternoon, holding steady for the session after a period of significant volatility. Thursday’s stability follows a 170% surge over the past month sparked by the company’s strategic financial overhaul announced in late June.
What To Know: On June 30, the silicon carbide technology leader voluntarily entered a pre-packaged Chapter 11 restructuring process. The move, which has strong support from over 97% of its senior secured noteholders, is designed to slash total debt by approximately $4.6 billion, a 70% reduction, and cut annual interest expenses by 60%.
The company has stated it has sufficient liquidity to maintain normal operations, pay vendors and deliver to customers throughout the process.
CEO Robert Feurle framed the restructuring as a proactive step to strengthen Wolfspeed’s capital structure and accelerate its path to profitability, with an expected emergence from Chapter 11 by the end of third-quarter 2025.
Confidence has also been bolstered by a leadership refresh, including the recent appointment of Gregor van Issum as the incoming Chief Financial Officer. Following the Chapter 11 news, the stock rebounded sharply from a low of 39 cents early July.
The company’s long-term recovery now hinges on the successful execution of its restructuring plan and the guidance of its new leadership, something traders and investors will be watching closely.
Price Action: According to data from Benzinga Pro, WOLF shares are trading flat at $1.72 Thursday afternoon. The stock has a 52-week high of $20.23 and a 52-week low of $0.39.
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