And borrowing from one toxic financer to pay off another is not "setteling debt", it is digging the hole deeper. Thats just like paying ones Visa with their Mastercard, it simply does not work out. Like was said, "robbing Peter to pay Paul." IMHO the company is now at the mercy of it's financers.
TY for pulling up that filing but I didn't see anything in it about "Toxic financing". You said it was there for all to see in black and white. If it is there in black and white as you say, then show it to us!