I think they needed money very badly. Being sued at this point while looking for financing would look very bad. Remember the big working capital deficit?
That said, I can not fathom them entering into this shitty dilutive deal on these terms without the belief that default was an option. So, yes, I think they think they have hope that a White Knight rides in.
Sorry I missed answering your first question. Then it would be a default. Interest would go to 18%. Then they would be at Yorkville and co’s mercy to renegotiate terms.
Market Data 
Markets 
AI
