banks make money by mainly borrowing and lending money to have...

banks make money by mainly borrowing and lending money to have positive interest difference.

if the company can repay the new short-term debt facility and is able to meet the interest payments in one year, why would the banks let such a company go bust?

if the company went bust, the banks would have to wait years to get back their portions of money, which would more often less than their loans to the company, not to mention the interest payments. besides, selling the existing assets would be more difficult, management fees would be forgone, etc. banks would have to give provisions for the loans the company on their balance sheets if the company went bust.

in a word, it is not the best interest to banks to let the company go bust at present. but during such a period of crisis, banks themselves are in difficulties. so, things do not always develop in normal ways. many things just unbelievably happened. be prepared for the worst.

in my opinion, the most important question is " can the company remain profitable after asset sales? "