Wolfspeed (WOLF) Tumbles 9.56% on Bankruptcy Exit Concerns

We recently published 10 Stocks Losing Big Amid Market Boom. Wolfspeed, Inc. (NYSE:WOLF) is one of the worst performers on Thursday.

Wolfspeed fell by 9.56 percent on Thursday to close at $2.46 apiece as investors sold off early positions over concerns about whether it would be able to exit bankruptcy over the next few weeks, as it promised.

It can be recalled that Wolfspeed, Inc. (NYSE:WOLF) filed for Chapter 11 bankruptcy in June this year after incurring insurmountable debt. On September 8, the court officially approved its plan of reorganization.

In line with the reorganization, Wolfspeed, Inc. (NYSE:WOLF) plans to reduce its debt load by approximately 70 percent, better positioning itself to execute on its strategic priorities.

“We are pleased to reach this important milestone, which clears the path for us to complete our restructuring process in the coming weeks,” CEO Robert Feurle said.

“We believe that strengthening our capital structure will help us to shape Wolfspeed into a leader in its industry, and we look forward to emerging with the financial flexibility to move swiftly on our strategic priorities and reinforce our leadership in silicon carbide. I would like to thank our talented team for their continued focus and hard work, our customers and vendors for their ongoing cooperation, and the lending group who supported our Plan of Reorganization,” he added.

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Disclosure: None. This article is originally published at Insider Monkey.