Overstock's new debt agreements

This article discusses the debt covenants engaged in by Overstock.com in their loan with Wells Fargo.

A debt covenant is basically an agreement over a loan that restricts some of the actions a borrower may engage in. If the covenant is violated then the lender has the right to repossess their loan. Often these covenants will refer to accounting information, including restrictions on leverage ratios. An academic study by Illa Dichev and Doug Skinner found that debt covenants that are violated by healthy firms are not always repossessed, however, if we were to believe Gary Weiss, if Overstock violates their covenant it might be because they are heading to bankruptcy...

Do you agree with Gary Weiss on Overstock's impending doom?

How might the loan affect your forecasts of overstocks operating performance?