There are now stories in three 'respected' newspapers concerning XL, the Telegraph, Times and Daily Mail. The truth seems to be that XL's bankers (Barclays) have withdrawn funding, and the company has invited Kroll, a restructuring expert, in to help them refinance. This isn't scaremongering, it's happening.
Currently, flights are operating as normal. Previous comments on this thread refer to the cancellation of the Caribbean winter series, and this seems to be an indication of tough times on long-haul. It's a sensible precaution to take, so that the group minimizes its potential cash requirements. I'm sure XL will reduce their winter European flying programme, as they did last year, to ensure they are well positioned for summer 09.
Hopefully XL will find the funding they need, but it's inevitable that some companies will fail in the current climate. The good news is that the group's holiday operations are reporting good forward bookings.