I agree that debt is their poison at this point in time.
I don't agree that they will cut the divi or need to. There are other forces at work here, behind the scenes.
No, I don't know what they are or how they came about. I do know how easy it is for people that have never had huge amounts of money at their disposal to spend it excessively, because they don't really grasp the ramifications that the pot isn't bottomless.
That may or may not be what happened here.
It could also be that they believed so much in their abilities and business model that they were willing to gamble big, for a big win. Time will tell, whether they are right or wrong.
I honestly feel that if the divi is cut, 5% -50% the stock will lose half its current price overnight. Maybe that's why the stock price is climbing???? If the share price drops below a certain amount, the company will be sold for its assets to pay off the creditors. We, the shareholders, will come last.
I've seen it happen before, to relatively viable companies. This company, is dangerously close to just such a scenario. If the new BOD members aren't very careful, they could stumble this company into bankruptcy just on fear alone.
Don't feed the shorters with advocating a divy cut. That would be their ideal situation. They couldn't care less if they kill the goose that lays the golden egg.