My understanding is, that the company was actually profitable,...

My understanding is, that the company was actually profitable, but they were having problems refinancing due to the writedown in the value of their assets. If/when the credit crisis is over, then BNB would have probably been able to refinance and still be alive, the problem is that they have negotiated write at the bottom, when their assets values are low and the banks are desperate to get some cash back, hence the miserable terms that BNB accepted and why the noteholders are so peeved off.