The fear of default is the main driver pushing the stock price down. Here is the transcript of the cc to put away those fears:
Question by Michael Mueller – JP Morgan And then going back to the question about leverage at year end approaching 70%, I mean how should we –
Answer by Robert F. McCadden I don’t think we said that. We didn’t say that. I think we said we are currently, believe we are beneath 55%, we approach 65% at the middle of the year and we exceed 65% toward the end of the year, but I don’t think in any of our estimates did we get close to a 70% threshold.
Michael Mueller – JP Morgan Okay so implicit in the idea that you would break the covenant if you are two quarters beyond that end of 2010, is the assumption that you guys are working toward that the credit line gets refinanced or recast this year with new terms that would let you out of that? In which case you're assuming that in your numbers or yes I guess the question is are you assuming the credit line gets redone in 2009?
Robert F. McCadden Yes our expectation is as Ed mentioned, we have begun very preliminary discussion with the banks and we will work diligently over the next couple of months, quarters to complete the refinancing and have a new credit facility in place hopefully by the end of the year.
Michael Mueller – JP Morgan Okay is the remedy to that situation north of 65% for two quarters, more likely to be at this point the redoing of the terms at the credit facility or kicking up extra proceeds from mortgages to pull you back down below that 65%?
Robert F. McCadden Yes I mean all of these things are available to us, certainly as we mentioned we have a fairly wide range of spending in terms of what we are committed for and what we could spend. Otherwise we assess the performance of the company over the next quarter, so we'll be in a much better position to either scale back spending; certainly we can reduce costs in other areas of the company. Obviously, opportunistically, we saw an opportunity to buy back converse with the fourth quarter which allowed us to reduce leverage on that three to one basis, so there's a lot of tools in the toolbox that we have available to ensure that we remain in compliance with the existing covenants.