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Wolfspeed Shares Soar 48% as Bankruptcy Court Approves Restructuring Plan

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Wolfspeed (WOLF.N) saw its shares jump 48% to $1.82 on Tuesday after a U.S. bankruptcy court approved the company’s Chapter 11 reorganization plan, paving the way for an exit from bankruptcy in the coming weeks.

Key details of the restructuring

  • Debt reduction: Wolfspeed will slash its debt by about 70% (~$4.6 billion).

  • Lower costs: Annual cash interest payments will be cut by 60%.

  • Timeline: The company expects to formally emerge from bankruptcy within several weeks.

Industry role

Wolfspeed specializes in silicon carbide chips, which are prized for energy efficiency and are widely used in:

  • Electric vehicles (EVs)

  • Solar inverters

  • Industrial power systems

Leadership statement

CEO Robert Feurle said the ruling “clears the path for us to complete our restructuring process in the coming weeks.”

Background

  • Wolfspeed filed for Chapter 11 bankruptcy in June, citing going concern doubts.

  • The restructuring provides the company a financial lifeline amid surging demand for power-efficient chips, especially in EV and renewable energy markets.

Northvolt Moves Toward Longer-Term Bankruptcy Financing

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Swedish electric vehicle battery manufacturer Northvolt announced on Friday that it is making progress toward securing additional bankruptcy financing, with plans to finalize the arrangement by late January. Since entering bankruptcy on November 21, the company has engaged with over 100 potential lenders and investors to secure the necessary funds for its restructuring.

Northvolt’s initial bankruptcy loan, a $100-million facility from Swedish truck maker Scania, was meant to help the company through the early stages of its restructuring. However, it was not intended to carry the company through the entirety of the bankruptcy process. The company is now actively evaluating proposals from both strategic and financial investors to provide long-term financing.

At a court hearing in Houston on Friday, Northvolt’s attorney, Jack Luze, confirmed that the company is working on a longer-term financing proposal, which will be presented to U.S. Bankruptcy Judge Alfredo Perez during a court session scheduled for January 28.

Judge Perez approved the bankruptcy loan in full on Friday, after previously allowing the company to access the initial $51 million from the loan. A Northvolt spokesperson expressed satisfaction with the progress, noting the approval of the loan as an important step in the restructuring process.

The company, which has raised over $10 billion in an effort to produce electric vehicle batteries and compete with dominant Chinese manufacturers, remains operational with around 6,600 employees across seven countries. Northvolt is hopeful that its bankruptcy restructuring will allow it to continue business as usual while addressing its financial challenges.