Wolfspeed Inc (NYSE:WOLF) shares surged 29% to $28.50 in early trading on Tuesday after the chipmaker successfully exited from Chapter 11 bankruptcy with a much-reduced debt load.
Wolfspeed announced on Monday it had achieved its goal of reducing overall company debt by about 70%.
"We are well positioned to capture rising demand in end-markets, such as AI, EVs, industrial and energy, that are rapidly growing and recognizing silicon carbide's potential," Wolfspeed CEO Robert Feurle said, as reported by Reuters.
The company is a provider of silicon carbide semiconductors, which have superior energy efficiency, to electric-vehicle makers.
As part of its restructuring, Wolfspeed canceled all its legacy shares, issuing just 1.3 million new shares to existing investors at a steep exchange ratio of less than 1% per old share.
The majority of Wolfspeed’s new equity goes to creditors and backstop investors.
Wolfspeed also recently appointed industry veteran Van Issum as its chief financial officer.
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.