Wolfspeed, Inc. (NYSE:WOLF) shares are trading higher Tuesday, adding to strong gains in recent weeks. The company’s restructuring deal appears to have sparked renewed investor confidence.
What To Know: The optimism comes after the company recently initiated a pre-packaged Chapter 11 filing. As part of the restructuring plan, Wolfspeed expects to eliminate approximately $4.6 billion in debt, representing a 70% reduction, and lower annual cash interest payments by 60%. The company noted that it expects the restructuring to accelerate its path to profitability.
Wolfspeed said it will continue normal operations and customer deliveries throughout the process and aims to emerge from the restructuring by the end of the third quarter.
Last week, Wolfspeed announced the appointment of Gregor van Issum as executive vice president and CFO, effective Sept. 1. Van Issum brings experience from ams-OSRAM and NXP Semiconductors and is expected to play a key role in guiding the company through its transformation.
"Gregor has helped lead large, multibillion euro businesses with complex manufacturing operations, which will be invaluable to Wolfspeed as we unlock the potential of our purpose-built 200mm platform. The Board and I look forward to collaborating with Gregor as we position Wolfspeed for long-term growth and profitability," said Robert Feurle, CEO of Wolfspeed.
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WOLF Price Action: Wolfspeed shares climbed to $1.77 on Tuesday before pulling back. The stock was up 5.48% at $1.51 at the time of publication, according to data from Benzinga Pro.
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