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.

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,