Why Wolfspeed Stock Skyrocketed 27% Today
Shares of Wolfspeed (NYSE: WOLF) soared Monday, finishing the day up 27%. The rise comes as the S 500 and Nasdaq Composite gained 0.4% and 0.9%, respectively.
The chipmaker's stock, still battered and down more than 55% for the year, suddenly looks very different to investors after last week's announcement that it will soon exit Chapter 11 bankruptcy. It's still gaining on last week's news.
Last week, a bankruptcy court approved Wolfspeed's re-organization plan that will eliminate $4.6 billion in debt -- a 70% reduction -- while cutting annual interest expenses by 60%. With creditor support secured from more than 97% of senior note holders and two-thirds of convertible holders, the company anticipates emerging from bankruptcy within a matter of weeks.
Source Fool.com
