"Everybody's Least Favorite Chapter For some businesses, the final chapter in their story is Chapter 11, a type of financial filing that signals bankruptcy protection and proceedings. The "protection" part of the equation relates to a company's creditors and sometimes the shareholders, whose shares could end up on an over-the-counter (OTC) market or become worthless. Without a doubt, many of Wolfspeed's stockholders considered these worst-case scenarios when the company filed for Chapter 11 on June 30 of this year."
"It was a disappointing outcome for a tech startup with so much promise. In the era of artificial intelligence (AI), Wolfspeed's energy-efficient silicon carbide chips should have ensured blockbuster sales and profits. Per Reuters, Wolfspeed expected that it would emerge from bankruptcy and reduce its total debt load by approximately 70%, which would equate to nearly $4.6 billion. It seems, however, that not all participants were convinced that Wolfspeed could stage a comeback."
Wolfspeed develops silicon carbide technology for semiconductors and experienced extreme 2025 stock volatility, with daily moves often exceeding 10%. The company filed for Chapter 11 bankruptcy protection on June 30 amid huge debt and slowing demand from electric vehicle and industrial markets. Wolfspeed projected a roughly 70% reduction in total debt, equal to about $4.6 billion, as part of restructuring. The stock plunged from above $5 in April to a 52-week low near $0.39, raising delisting risk because the NYSE can remove listings trading below $1 for over 30 consecutive trading days. Volatility presents both high risk and potential opportunity for investors.
Read at 24/7 Wall St.
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