The terms of CROX's new credit facility require it to maintain a tangible net worth of $266 million, beginning with the quarter ending 12/31/09. Since its net worth was $261 million at the end of Q2 and it is projecting losses through 2010, CROX seems on track to be in technical default of the credit facility on Jan. 1, 2010, putting them at PNC's mercy.
Since you have to believe that banks are not stupid that means that the current worth after this quarter would likely be more than $266M. Since banks don't usually look for 100%, as they usually provide some leeway, that would likely indicate that the worth is North of $266 by at least 10 to 20%. This is all conjuncture on my part and only the release in November will tell us the total story of what happened this quarter.