It is merely an attempt to be predictive. Only the results can prove or disprove the premise.Using words like 'toxic' however colorful to describe any financing,assumes that the financing will be damaging or destructive .It assumes,it does not guarantee.My personal experience with so called ' toxic' funding have shown that if revenue exceeds liability,then there is no 'toxicity'. I rely on my own experience to judge my investments.Predictions of toxicity remain unproven until verified by actual results of the particular company discussed.I don't deny that some may describe the financing as toxic.For me it is not toxic until proven so.
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