On July 8, 2025, U.S.-based silicon carbide (SiC) manufacturer Wolfspeed saw its stock price surge by 95.76% at the close of the U.S. market, boosting its market capitalization to $359 million. The company, which had previously signaled intentions to file for bankruptcy, now anticipates exiting bankruptcy reorganization by the end of the third quarter.
New CFO Appointment
A key driver of the stock surge is the appointment of Gregor van Issum as Wolfspeed¡¯s new Chief Financial Officer (CFO), effective September 1, 2025. Van Issum will lead the company¡¯s financial restructuring efforts. With a background in economics and information technology from Tilburg and Maastricht Universities, as well as an advanced management degree, he brings extensive experience in financial management and strategic planning. Previously, he served as CFO at ams OSRAM, overseeing financial strategy and operations in complex multinational environments.
Financial Challenges and Restructuring
Wolfspeed¡¯s financial struggles were evident in its Q3 2025 fiscal year report, covering the nine months ending March 2025. Revenue reached $561 million, down 7.57% year-over-year, with an operating loss of $748 million and a negative gross margin. To address these issues, the company initiated layoffs and closed outdated production lines starting in mid-2024. In March and June 2025, it reduced staff at its Siler City material plant, but these measures failed to balance input and output.
Originally, Wolfspeed planned a pre-packaged Chapter 11 bankruptcy reorganization, which would have restructured equity with creditor consent while maintaining operations. Existing shareholders would have seen their holdings canceled, receiving only 3.0% to 5.0% of new common stock, with the remainder allocated to a creditor consortium. The board was set to include seven members: four appointed by first-lien creditors, one by second-lien creditors, one reserved for the current CEO, and one determined through negotiation.
Strategic Partnership with Renesas
In July 2023, Renesas Electronics signed a long-term SiC wafer supply agreement with Wolfspeed, increasing its prepayment to $2.062 billion by October 2024. As part of Wolfspeed¡¯s restructuring, Renesas converted this prepayment into convertible notes, common stock, and warrants, potentially securing a 34.7% stake in a fully diluted scenario, positioning it as a major shareholder. This move reflects both a loss-mitigation strategy and an intent to gain significant influence through the reorganization.
Notably, in late May 2025, Nikkei Asia reported that Renesas had abandoned its plans to produce SiC power semiconductors, canceling a planned mass production startup at its Takasaki facility in Gunma, Japan, and disbanding its dedicated R&D and production team. This decision may have been a strategic adjustment during negotiations with Wolfspeed for the debt-to-equity conversion.
Debt Reduction and Outlook
With the new CFO and a streamlined reorganization plan, Wolfspeed aims to exit bankruptcy by Q3 2025. The company has reached an agreement with creditors to reduce its total debt by 70% (approximately $4.6 billion) and cut annual cash interest payments by about 60%. This significant debt relief alleviates pressure on its balance sheet, paving the way for improved financial stability and operational prospects.
