Bankruptcy Fears Bulldoze WCI Communities

Shares of WCI Communities (WCI Quote) plunged nearly 30% Wednesday as investors feared a bankruptcy at the Florida condo developer.

The decline came after Standard & Poor's issued a note maintaining its junk rating and negative outlook on the company. The agency pointed out that the homebuilder faces "acute liquidity challenges."

"These challenges include the need to negotiate more liberal terms governing a $700 million secured revolver and a $263 million secured bank loan, including a modification of the company's fixed-charge covenant," S&P said in a note. ...