I am wondering why this is continually being sold down. It...

I am wondering why this is continually being sold down. It appears as though they are at risk of imminent failure.

As they are solvent, even if a little cash strapped, I am inclined to wonder if they have breached their 55% leverage covenant? They recently reported 51% leverage.

I doubt they are at risk from gearing, even though it is high compared to others that have recently completed SPP's.

Can anyone explain to me what would likely trigger the above leverage covenant to be breached?

When is a company required to report on a covenant breach?
a) when it becomes apparent that it will be breached?
b) only retrospectively in half yearly reports?

Is it possible they are already in breach, but have not yet informed the market?, hence continual selling by funds with analysts who can see the writing on the wall?

If they are in/do breach, what is likely to happen - a lengthy suspension followed by forced asset sales, or is it likely to remain trading while the banks force asset sales?