I've heard this speech a bunch of times at private employers, usually at the beginning of a new year. Last year's speech was all about how the company is growing, the product line is selling beyond anybody's predictions, we're all going to get raises and bonuses etc. The short version of this year's speech is "What we told you last year (or last week) was bullshit."
This doesn't mean they're broke, it does mean they don't have the cash to do what they thought they were going to do. Based on my time working in real estate development I estimate the Warwick project will cost them three hundred to five hundred million dollars, if everything goes well. Anybody that's done development knows that's a gigantic "IF." I can count on the fingers of one hand the projects that came in on time and on budget.
What we don't know is what is causing the cash sort-fall. My guess (again based on experience in the area) is that somebody had their rose colored glasses on when they estimated the cost of Warwick and now they're trying to cover their costs. This has the potential to suck up a gigantic pile of money.
I doubt it's lawsuits, those will be a pain, but I don't think they can cost enough to raise this kind of problem.
One thing we don't know is what they netted from the sale of NYC property. They may have had liens, or they may have financed the sales themselves - not a bad plan as it insures a steady stream of cash, and if the buyer goes under they foreclose the property and sell it to somebody else. If Warwick is going way over budget, the planned income stream may not be enough. Or perhaps something is holding up a sale. We don't know.
That's my .02 on this.
