This is very interesting reading and almost makes me wonder what Gordon has been doing with all the liquidity. My gut instinct at first when he warned of dire consequences was that he was over-dramatizing the whole situation to accelerate a Federal aid package, but this announcement, and its corresponding effect upon the debt ratings for CAL and the industry in general comes as a bit of a shocker.
Is Continental really this badly over-stretched? Their Debt to Equity ratio as of last week was in the range of 3.25, which is on the higher side for the industry, but still not in panic signals territory. If their financial condition is indeed the case, then Gordon should be chided for his retrospectively foolish equity buyback program in January which reduced their liquidity significantly.