Wolfspeed: Equity Likely To Be Wiped Out In Bankruptcy - Sell
Source: SeekingAlpha
2025-05-20 23:10:34 ET
Summary
- Two weeks ago, debt-laden silicon carbide semiconductor solutions provider Wolfspeed warned investors of a potential bankruptcy filing.
- On Wednesday, the Wall Street Journal reported that the company is preparing to file for bankruptcy within weeks, thus causing a 60% selloff in the shares in after hours.
- With $6.65 billion in debt ranking ahead of the common equity, a recovery for shareholders would be highly unlikely.
- For my part, I would expect unsecured creditors to emerge as the restructured company's new owners, with current equity holders likely being wiped out.
- Consequently, I am initiating coverage of WOLF with a "Strong Sell" rating.
After the close of Tuesday's session, shares of silicon carbide semiconductor solutions provider Wolfspeed, Inc. ( WOLF ) or "Wolfspeed" cratered by more than 60% to new all-time lows after the Wall Street Journal reported that the company is preparing to file for bankruptcy " within weeks " after allegedly rebuffing creditor attempts to restructure its debt out of court....
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Wolfspeed: Equity Likely To Be Wiped Out In Bankruptcy - Sell
Wolfspeed Inc. New
NASDAQ: WOLF
WOLF Trading
-6.43% G/L:
$63.99 Last:
7,085,500 Volume:
$62.80 Open:
WOLF Latest News
WOLF Stock Data
$712,401,112
19,388,132
8.94%
5
N/A
Semiconductors and Equipment
Technology
US
Durham
