I think when KRY (RM, BF, whoever) says they were "taken off guard", or something to that effect, I think they did not expect the MOC to be revoked unilaterally; they probably simply figured VZ would continue to stall and stall until KRY went bankrupt or filed for ARB.

Apparently, the CVG didn't telegraph any intentions at all; just a letter and that's it. So I can see where management would use the phrase taken off guard, considering the current circumstances. But I don't think it's something they aren't prepared for. The path forward is quite clear at this point.