Writing down a debt cause you can not pay it- as you have no cash/cash flow, is not necessarily a "good thing" IMO. It's "negotiating" one step before BK in many situations. Creditors don't like to see "bad debts" just disappear IMO. The creditor on the other side of the deal is the one who didn't get paid the "accrued" expenses and is taking a loss on their balance sheet entry. See?
Take it for whatever it's worth. Like it, don't like it. Good. Bad. Makes no difference in the cash situation IMO, and that's the real pinch they're in that I can see. The other big debts, the one's that have to be paid each month and can't be "accrued/carried" are still there and unchanged and need cash flow, same as yesterday. Will a potential new "creditor/investor" like that they were able to work out a deal, "negotiate away" and clear off an old, bad debt they've been "carrying" on the books, accruing, but never making payments on? Maybe? Don't know? It's possible, off course.
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