You're not getting it. Old debt needs to be elminated and it can't be done now because there is not enough cash to do it. Guess what. 18 months is quite a stretch!
Kenergy can be cash flow positive and make its interest payments. The principal is still there. It's really no different than you having a $5,000 loan, making $5,000 a month and paying $130 interest. How much money is left over for you? $4,870.