Dynegy Inc. warned it could seek bankruptcy protection if it cannot amend or replace its existing loan facility, the latest twist in the power company’s bumpy effort to restructure itself.

Investors seemed to mostly shrug off the warning, made in a regulatory filing, as the company’s shares fell 1.7 percent.

The company, whose top management announced their resignations last month after failing to sell the power company for a second time in a year,  named four directors to its board, including two nominated by billionaire investor Carl Icahn and one backed by hedge fund Seneca Capital.

The company’s shares were down 10 cents, to $5.69, in afternoon New York Stock Exchange trading after warning about the possibility of bankruptcy in a filing with U.S. regulators Tuesday.

Dynegy’s shareholders recently rejected a $665 million buyout deal floated by Icahn. That $5.50-a-share bid came under fire from Seneca, Dynegy’s second-largest shareholder, which believes the company has more value.

Investors had previously voted down a lower bid by private equity fund Blackstone Group , and after the failure of the second sale Dynegy Chief Executive Bruce Williamson and Chief Financial Officer Holli Nichols said they would step down March 11.

The company’s management has long argued that it faces serious risks if it remains a stand-alone company, saying that weak market conditions could force the power company into a liquidity crisis if the deal was not completed.

Dynegy is weighed down with a heavy debt load. The company had more than $4.6 billion of long-term debt at the end of last year, compared with a market capitalization of roughly $700 million.

Still, Gimme Credit analyst Kimberly Noland said the likelihood of a bankruptcy in the near-term is slim, especially because Icahn and Seneca seem dedicated to making sure the company stays afloat.

Icahn has suggested he is willing to provide the company with debt or equity financing.

“If that’s still out there, bankruptcy doesn’t seem imminent,” Noland said. “They are probably going to make it possible for the company to hang on, unless its clear that it has to blow up.”

Dynegy, which sells power at competitive rates into the open market, has tried to sell itself in the face of weak natural gas prices, which often dictate power prices.

Natural gas oversupply — driven by new production from U.S. shale formations — has driven down the value of the fuel and is expected by many to keep prices low for years to come.

Natural gas prices have fallen nearly 18 percent since January.

In a statement, the company said Thomas Elward, Hunter Harrison, Vincent Intrieri and Samuel Merksamer were elected to the board, effective Wednesday.

Harrison was nominated by hedge fund Seneca Capital, Dynegy’s second-largest shareholder. Intrieri and Merksamer were nominated by Icahn Associates, Elward was independently named, Dynegy said.

The four directors have been named as sole members of the board’s Governance and Nominating Committee, which has the responsibility of searching for a permanent chief executive and additional director nominees to stand for election at the company’s annual stockholders meeting on June 15.

In the filing late Tuesday with the U.S. Securities and Exchange Commission, Dynegy also said it might not be in compliance with some loan covenants and might have to seek bankruptcy protection.

The cost of protecting debt issued by Dynegy against potential default rose 91 basis points to 1,325 basis points on the news, before tightening back to 1,293, out 59 basis points on the day.

The company’s 7.75 percent notes due 2019 were among the most active of its bonds and traded lower at 68.2, above early lows.