FATAL ERROR (VREADR) BAD IREC when executing ADDXY

Error Message

When executing the ADDXY command in Workstation or the 'Add XY Coordinates' tool in ArcToolbox, the process fails with the following error:

"FATAL ERROR (VREADR)
BAD IREC
ISP channel# 1 was not properly closed (INFEND)
Bailing out of ADDXY
ODE sub-process failed"

Cause

The point coverage does not have current point topology.

Solution or Workaround

Code:
Arc: build pointcov point

Note:
This error commonly occurs after converting a shapefile to a coverage using the 'Shapefile to Coverage' tool in ArcCatalog or ArcToolbox. This tool creates the new coverage using the LAYEREXPORT command which does not build point topology. The lack of point topology in this coverage is indicated by the COVER# and COVER-ID items having default values of 0 and any subsequent attempt to add XY coordinates to the attribute table will fail.