Wolfspeed Jumped 10% In Premarket After Surging 14% On Wednesday
Tiger Newspress10-09
Wolfspeed jumped 10% in premarket after surging 14% on Wednesday.
The embattled chipmaker exited Chapter 11 protection after successfully negotiating a plan with its creditors to reduce its suffocating debt load significantly. While this allowed the company to survive, it also meant existing shareholders were massively diluted.
Key to its restructuring was the cancellation and delisting of existing shares and the issuance of new stock, which the company executed in late September. Those who held its common stock were only given roughly 5% of new shares, while the company's creditors received the lion's share.
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