Shares of Wolfspeed Inc. slid almost 60% on Wednesday after a report indicated that the company is preparing to file for bankruptcy in the next few weeks.

The Wall Street Journal reported Tuesday afternoon that after the company rejected several proposals by creditors to restructure its debt, Wolfspeed was looking at a plan to use Chapter 11 bankruptcy in a way that's acceptable to a majority of debtholders.

Wolfspeed’s stock dropped by over 60% after reports began circulating that the company is preparing to file for chapter 11 bankruptcy.