Thanks for the clarification of how they breached the Covenant. I should have done my research better. I was totally caught unaware of the massive dilution they are doing with the help of Merril Lynch.
In order to satisfy the old debtors they will have to either pay them off or do more dilution to keep them quiet. I think there is less of BK risk with cash flow through sale of shares, but dilution will mean that shares will be worth almost nothing.
I still see potential risk of BK due to the value of the fleet eroding in the market causing them to affect their credit rating forcing them to BK or going private.
Either way things are looking real Bad.
Disclaimer: Do not buy or sell based on my recommendation. I am not your financial advisor .My recommendations are based on my intuition, research or both and may be right or wrong.