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.

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.