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,

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.

Traders ramped up bearish bets Tuesday on Wolfspeed Inc., before the Wall Street Journal reported after regular market hours that the ailing chip component maker is preparing to file for bankruptcy protection within weeks.