Updated from 5:22 p.m. EDTThe latest cash crunch may have permanently grounded Leap Wireless ( LWIN). The embattled carrier's stock plunged precipitously today on news that it is likely to violate its debt covenants after an arbitration court ruled against the company. In afternoon trading, shares were tanking 31 cents, or 41.9%, to 43 cents; shares had touched intraday 52-week lows before recovering. In a prepared statement, Leap said that based on an arbitration court ruling, the company will be paying 21 million shares to MCG PCS, priced at $1.894 a share, amounting to about $41 million. As a result, the company said it "will probably cause the company to fail to comply with, and to require waivers of, or amendments to, its vendor credit agreements in the near term," which could cause creditors to deem loans to be payable immediately. In a last-ditch effort to remain above water, Leap has retained UBS Warburg to seek out new financing amid a company restructuring. "In light of the company's high level of debt and the restricted availability of the capital markets, we believe that hiring UBS Warburg and pursuing the alternatives available to us are in the best interest of the company and all of its stakeholders," said Leap Chairman and Chief Executive Officer Harvey P. White, in a prepared statement. The developments appear to be the final chapter of the Leap saga, which remains one of the most glaring examples of the telecom meltdown's impact on the wireless carrier sector. The company is primarily known for its innovative pricing.