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Non-Tech : Kirk's Market Thoughts -- Ignore unavailable to you. Want to Upgrade?

To: nicewatch who wrote (26045)	9/29/2025 6:14:50 PM
From: Kirk ©	Read Replies (1) \| Respond to of 26438

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.

To: nicewatch who wrote (26045)	9/29/2025 10:30:29 PM
From: #Breeze	1 Recommendation Recommended By toccodolce Respond to of 26438

After emerging from Chapter 11 bankruptcy in late September 2025, Wolfspeed's existing common shareholders retained only 3% to 5% of the new, restructured company . The distribution to existing shareholders was severely diluted and subject to additional factors, including regulatory approval. The rest of the company was distributed primarily to lenders who converted their debt to equity. Shareholder distribution details Existing common stockholders: Were allotted between 3% and 5% of the new common equity. This was based on an exchange ratio of 0.008352 shares per cancelled pre-bankruptcy share. Contingent shares: An additional 871,287 shares were to be issued if certain regulatory milestones were achieved before a set deadline. Debt holders: The remaining 95% to 97% of the company's equity was distributed to creditors, including major lenders Apollo Global Management and Renesas Electronics. Specifically, convertible bondholders received 56.3% of the new company's shares, while Renesas received 38.7%. Management incentive plan: Up to 10% of the new equity was allocated for a management incentive plan. Factors affecting the final distribution Renesas regulatory approval: The exact percentage for common shareholders (either 3% or 5%) depended on whether Renesas, a Japanese company, received regulatory approval for its stake from the Committee on Foreign Investment in the United States (CFIUS) and other agencies. Cancellation of existing stock: As part of the restructuring, all of the original 156.5 million outstanding shares were cancelled and replaced with new shares in the reorganized company. This process severely diluted existing equity.