Is it total assets or net assets? Because even total assets, if...

Is it total assets or net assets? Because even total assets, if they pay off current liabilities with the cash they have, total assets fall $110m.
I would have thought the loan was on net assets, not total assets as you could rack up enormous other debt unsecured and stay inside guidelines with no regard to other debt, just doesn't make sense from a lenders point of view.