New Delhi, Sept. 30 -- US-based chipmaker Wolfspeed Inc. (WOLF) shares surged on Monday afternoon after it announced a reorganization plan. Under the plan, shareholders will receive new common stock in exchange for their existing shares.

The stock surged as much as 1,450 per cent following its Chapter 11 restructuring and corporate changes, which were approved by a US court in early September.

The chipmaker filed for bankruptcy in July to enact a creditor-backed plan to slash $4.6 billion in debt, marking one of the largest bankruptcies filed so far this year.

Wolfspeed's court-approved plan will allow the company to exit bankruptcy protection in the upcoming weeks. The restructuring is expected to significantly reduce its debt by 70 p...