Wolfspeed, Inc. ( WOLF ) shares are trading higher Tuesday, adding to strong gains in recent weeks. The company’s restructuring deal appears to have sparked renewed investor confidence.

What To Know: The optimism comes after the company recently initiated a pre-packaged Chapter 11 filing. As part of the restructuring plan, Wolfspeed ( WOLF ) expects to eliminate approximately $4.6 billion in debt, representing a 70% reduction, and lower annual cash interest payments by 60%. The company noted that it expects the restructuring to accelerate its path to profitability.

Wolfspeed ( WOLF ) said it will continue normal operations and customer deliveries throughout the process and aims to emerge from the restructuring by the end of the third quarter.

Last week, Wolfspeed ( WOLF ) announced the appointment of Gregor van Issum as executive vice president and CFO, effective Sept. 1. Van Issum brings experience from ams-OSRAM and NXP Semiconductors and is expected to play a key role in guiding the company through its transformation.

"Gregor has helped lead large, multibillion euro businesses with complex manufacturing operations, which will be invaluable to Wolfspeed ( WOLF ) as we unlock the potential of our purpose-built 200mm platform. The Board and I look forward to collaborating with Gregor as we position Wolfspeed ( WOLF ) for long-term growth and profitability," said Robert Feurle, CEO of Wolfspeed ( WOLF ).

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WOLF Price Action: Wolfspeed ( WOLF ) shares climbed to $1.77 on Tuesday before pulling back. The stock was up 5.48% at $1.51 at the time of publication, according to data from Benzinga Pro.

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