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Non-Tech : Kirk's Market Thoughts
COHR 154.52-3.0%Nov 7 3:59 PM EST
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To: nicewatch who wrote (26045)9/29/2025 6:14:50 PM
From: Kirk ©  Read Replies (1) of 26439
 
Axe Gemini: "do wolf shareholders prior to the bankruptcy filing get anything with today's announcement?"

AI Overview

Former Wolfspeed shareholders will receive new common stock in the reorganized company, but their stake will be significantly diluted as part of the bankruptcy restructuring. The original stock they owned has been canceled.

Key details from the bankruptcy restructuring:
  • Significant dilution: Prior shareholders were allocated 3% to 5% of the new equity in the restructured company. The majority of the new equity went to creditors in exchange for reducing Wolfspeed's massive debt.

  • Old stock canceled: The common stock that existed prior to the bankruptcy filing was canceled on September 29, 2025. The New York Stock Exchange has suspended trading of the old shares and is set to officially delist them on October 10, 2025.

  • New shares issued: For every pre-bankruptcy share they held, investors received a small fraction of a new share. For example, some filings report an exchange ratio of 0.008352 of a new share for each canceled share.

  • Reorganization plan: The restructuring allowed Wolfspeed to emerge from Chapter 11 bankruptcy with significantly less debt, improving its financial position. While this is a positive development for the long-term health of the company, it came at the cost of current shareholders' equity.

My guess is anyone who was able to execute a sell of shares held today at these silly, high prices will have the trades voided.

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