Wolfspeed shares rose another 50% on Thursday as the struggling silicone carbide chipmaker officially filed for Chapter 11 bankruptcy as planned in order to complete a debt restructuring plan.

The company called the move the "next step to implement its previously announced Restructuring Support Agreement ("RSA") with key lenders." Wolfspeed has said the RSA would slash its overall debt by 70%, or about $4.6 billion, as well as reduce its yearly cash interest payments by approximately 60%.

The firm maintains that it expects to move through the restructuring quickly, and emerge from bankruptcy this quarter.

CEO Robert Feurle explained that by strengthening its finances, "Wolfspeed will be better positioned to move faster on our strategic priorities and maintain our position as a global leader in the silicon carbide market."

Wolfspeed was already in financial straits when in March outgoing interim executive chair Tom Warner warned that the company may not receive $750 million in grants and $1 billion in tax credits it had anticipated from the CHIPS and Science Act of 2022. That news sent shares plunging, and they dropped even more in May following a report that it was considering filing for bankruptcy.