The loan amount is only 6m at the moment since 4m of it is in...

The loan amount is only 6m at the moment since 4m of it is in convertable notes. They can easily convert the other 6m in notes as well. The investor will gain more from it than his %9.5.

I would think that if they went to market for a raise they could do it easily by offering 1 share option.

Obviously this means current holders will be heavily diluted but it's the better option to insolvency and give new management time to sort out the issues..
They

They have hired a company to help with cut backs and raises