The North Carolina-based company plans to remain operational throughout the restructuring process, which it expects to be completed by the end of September.

Wolfspeed said the bankruptcy was part of a planned restructuring which would cut its overall debt by around 70%, or $4.6 billion.

Wolfspeed shares plunged 30% to an all-time low Monday as the struggling chipmaker announced it had filed for Chapter 11 bankruptcy in order to implement a Restructuring Support Agreement (RSA) with key lenders.