financial distress

Read the following and comment in 100 words provide a real life example within comment

Companies usually can predict when financial distress may occur, but most companies will derive a strategy (i.e. sensitivity analysis - best, normal, worst case scenarios) in hopes to not incur such losses. Delta went through a similar situation prior to Hurricane Katrina. Delta was in a financial ruin and diligently strategized to stay afloat. Delta was making positive changes, but failed to take into consideration the worse case scenario - Hurricane Katrina. 

http://www.foxnews.com/story/2005/08/29/katrina-hits-embattled-airlines.html

http://money.cnn.com/2005/08/31/news/fortune500/airlines/