Wolfspeed Inc (NYSE:WOLF) shares surged 49% to $1.84 in early trading on Tuesday after the provider of silicon carbide technology said it has received court approval for its reorganization plan that will allow the company to emerge from bankruptcy.
Wolfspeed noted it anticipates emerging from Chapter 11 protection in the next several weeks, at which point it expects to reduce its debt by about 70%.
“We believe that strengthening our capital structure will help us to shape Wolfspeed into a leader in its industry, and we look forward to emerging with the financial flexibility to move swiftly on our strategic priorities and reinforce our leadership in silicon carbide," Wolfspeed CEO Robert Feurle said in a statement.
The North Carolina-based company filed for Chapter 11 bankruptcy in June while also announcing a debt restructuring deal with key lenders, including its largest customer, Renesas Electronics.
Wolfspeed’s stock price has plunged about 74% year to date.