Mercer International (MERC) could file for Chapter 11 bankruptcy, Bloomberg reported Thursday, citing people familiar with the matter.

The unnamed sources told the news outlet that the Canadian pulp producer could seek court protection in the coming weeks, with creditors expected to take control of the company.

Mercer shares were 6.2% lower in Thursday's premarket activity.

Mercer did not immediately respond to MT Newswires' request for comment.

(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)