The threat exists, and a real one at that, is the possibility of having to write down their $2 billion in intangibles which came about primarily through acquisitions. I call goodwill an account where companies can put debits for overpaying for assets instead of debiting net worth and reducing it accordingly. Goodwill used to be something companies like Coca-Cola had where the is real value to the name.
If you take CEDC's $3 billion in assets and give it a 5% ROA, they would earn about $150 million after tax, or, over 20% net after tax on sales. Do a stock screen and you will see very, very few companies that can achieve that.
Goodwill impairment would affect their dividends, ability to raise share capital to reduce debt, and perhaps trigger a covenant default.
If this is such a great company, why is its debt rated junk status? It's a $20 stock if the market moves to 17,000, but if the market pulls back, this could be a $6 stock or less.