High Leverage And Negative EquitySubstantial debt and periods of negative equity are structural constraints: they elevate insolvency and refinancing risk, limit strategic flexibility, and increase borrowing costs. With heavy leverage, the company faces sustained pressure to generate excess cash to deleverage rather than invest in growth or plant upgrades.
Revenue And EPS ContractionRecent negative revenue growth and an almost total EPS contraction reflect weakening top-line momentum and earnings deterioration. Over a multi-month horizon, shrinking sales and collapsing EPS constrain internal funding, reduce margin for error on debt covenants, and signal challenges in demand or pricing execution.
Inconsistent Free Cash Flow And Variable ProfitabilityIrregular free cash flow and volatile operating margins undermine the firm's ability to reliably service debt, fund maintenance capex, and return to steady profitability. For a coal‑fired generator with high fixed costs, inconsistent FCF makes long-term planning and creditor confidence more fragile.