Shares for Quaker Fabric Corporation (NASDAQ: QFAB) dropped like a stone today, plunging more than 80 percent on market open. The source of the drop was a statement the company released after market closed yesterday afternoon, in which the company announced that it determined it had not “met the requirements for committed borrowings under its existing lending facilities.””As a result, any advances to the company by its revolving lenders will only occur on a discretionary basis,” the statement read. “The company further announced that it likely will commence an orderly liquidation of its business and a sale of its assets.”

In addition, Quaker Fabric claims to be actively investigating sources of alternative liquidity, including debt, equity or a combination of debt and equity financing.

“There is significant uncertainty as to whether the company will be able to obtain sufficient liquidity from alternative sources to continue its operations after its annual shutdown period,” the statement read. “The company expects that any such winding up and liquidation would not generate sufficient funds to permit any payment to holders of its common stock.”

In response to the news, share prices dived from $1.12 a share on market close to 17 cents a share on market open.