Wednesday after a report indicated that the company is preparing to file for bankruptcy in the next few weeks. The chip company is looking at a Chapter 11 plan after passing on other debt-restructuring proposals that would have taken place out of court,

Wolfspeed (NYSE:WOLF) shares cratered 40% during post-market trading on Tuesday after the Wall Street Journal reported the semiconductor firm is preparing to file for bankruptcy. The stock had already dropped 10% by the closing bell before plummeting another 40% post-market.

Durham semiconductor maker Wolfspeed could be on the verge of filing for bankruptcy, according to reports. Why it matters: A Wall Street Journal report said Wolfspeed could file for Chapter 11 bankruptcy in the coming weeks because of its high debt load.