Wolfspeed stock was surging Tuesday after the chip supplier filed for bankruptcy as part of a plan to restructure its debt.

The silicon carbide wafer maker said in a statement late Monday that it had filed petitions for reorganization under Chapter 11 of the U.S. bankruptcy code. It added that it expects to emerge from Chapter 11 protection by the end of the third quarter.

Shares soared 141% to 96 cents.

Wolfspeed said it expected to reduce its overall debt by about 70%, or $4.6 billion. The company said it was "continuing to operate as usual throughout the process, including delivering silicon carbide materials and devices to its customers and paying its vendors in the ordinary course."

Wolfspeed said last month that it was planning to file for bankruptcy, having agreed to the plan with key lenders including senior secured note and convertible debtholders and Japanese chip maker Renesas Electronics, which is one of its major customers.