Mallinckrodt plc (MNK) shares traded sharply lower on Monday afternoon following a report suggesting the company is in creditor talks ahead of a potential bankruptcy.

Mallinckrodt has begun confidential discussions with creditors and is now considering placing its U.S. generic-drug business into bankruptcy to address coming debt maturities and liabilities stemming from the opioid crisis, The Wall Street Journal reported citing people familiar with the matter.

Last year, reports emerged the company was exploring options that include a possible bankruptcy filing.

Mallinckrodt shares were trading down 28% to $3.65 at time of publication. The stock has a 52-week high of $27.33 and a 52-week low of $1.43.