1.In the first instance, liablities (Bonds) increase by $600 Million and Assets (Cash or Bank), increases by the same amount. Subsequently the increased cash or bank balance is used to pay off / retire other creditors. 2.Interest for half year = Principal X Halfyearly interest rate = $600 Million X 9.5%/2 = $28.5 Million The interest amount increases the expense amount in the Income statement, increasing the interest payable (liabilities) in the balance sheet till the same is paid in cash. When the same is paid the interest payable (liability) and cash (asset) is reduced by the same amount simultaneously. 3. Creditors are willing due to below reasons: High interest rate on bonds. Bonds could be made secured by creation of charge on entity's assets. Prospects of getting repayment from going concern better than part payment on liquidation and distress sale of assets. Given the brand name, quick turnaround for the entity possible once the pandemce effect is over making insolvency and bankruptcy alternatives uneconomic.