By George Glover
Wolfspeed stock was plummeting on Wednesday after The Wall Street Journal reported the embattled chip wafer maker could file for bankruptcy within a matter of weeks.
Shares plunged 56% to $1.38 ahead of the opening bell Wednesday. Futures tracking the benchmark S&P 500 were down 0.6%.
Wolfspeed is preparing to submit a Chapter 11 plan that would be supported by the majority of its creditors, The Journal reported, citing sources familiar with the matter. The company didn't immediately respond to a request for comment from Barron's.
Wolfspeed said earlier this month that it was considering either restructuring its debt or filing for bankruptcy. The company, which manufactures silicon-carbide wafers and chip components, holds $6.5 billion in debt, and had $1.3 billion cash in hand as of March 31.
As of Tuesday's close, shares had tumbled 53% this year amid worries about Wolfspeed's financial health.
Write to George Glover at george.glover@dowjones.com
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May 21, 2025 05:46 ET (09:46 GMT)
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