Ann: Trading Update , page-21

I don't hold COF but I will add some comments:

Banks have all sorts of fine print that can freeze draw downs based on banking covenants that are breached with regards to debt/earning ratios etc.

Holders of shares are generally blissfully unaware of these instruments so suddenly the bank will say you have to issue equity so you are no longer in breach of the loan agreement.

Hence a cap raise may happen even when there is headroom in the loan book.

These are general comments as I have no idea about COF in particular other than to say the debt looks rather alarming now compared to MC and cashflow restraints writedowns etc.