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Wolfspeed, Inc. (NYSE:WOLF), which carries a substantial debt burden of $6.7 billion and has been rapidly burning through cash according to InvestingPro data, announced Monday that all previously issued and outstanding shares of its common stock have been cancelled and exchanged as part of its court-approved Chapter 11 reorganization plan.
According to a statement based on the company’s SEC filing, existing common stockholders received their pro rata share of 1,306,903 new shares at an exchange ratio of 0.008352 per cancelled share. The exchange was executed in accordance with the plan confirmed by the United States Bankruptcy Court for the Southern District of Texas on September 8.
The filing also states that if certain regulatory milestones are achieved before a specified deadline, existing common stockholders will be eligible to receive an additional pro rata share of 871,287 shares, at an exchange ratio of 0.005568. If these conditions are met, the total distribution would amount to 2,178,190 shares, reflecting a consolidated exchange ratio of 0.013920. If the regulatory deadline passes without the milestones being met, the contingent shares will not be distributed.
Wolfspeed and its wholly owned subsidiary, Wolfspeed Texas LLC, filed voluntary petitions for Chapter 11 protection on June 30 to implement a prepackaged plan of reorganization. The Chapter 11 cases are being jointly administered in the Houston Division of the Southern District of Texas.
The company’s common stock continues to be listed on the New York Stock Exchange under the symbol WOLF.
This information is based on a press release statement contained in Wolfspeed’s Form 8-K filed with the Securities and Exchange Commission.
In other recent news, Wolfspeed, Inc. has announced the commercial release of its 200mm silicon carbide wafers, marking a significant step in its transition from silicon to silicon carbide technology. This development comes alongside the company’s successful court approval for its Plan of Reorganization, allowing it to emerge from Chapter 11 bankruptcy protection soon. The reorganization aims to reduce Wolfspeed’s debt by approximately 70%, a move supported by its creditors. Additionally, Wolfspeed has appointed Gregor van Issum as its new Chief Financial Officer, effective September 1, 2025, bringing over 20 years of semiconductor industry experience. This appointment follows the tenure of Interim CFO Kevin Speirits, who will remain with the company to assist with the transition. The bankruptcy filing, intended to reduce the company’s debt by $4.6 billion, has also affected its relationships with key partners, including Renesas Electronics Corp., which is listed among Wolfspeed’s top creditors. These developments reflect Wolfspeed’s strategic efforts to strengthen its financial position and leadership team.
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