Due to poor financial management (capex funded by short term debt and operating cash flow), a firm finds itself in a liquidity bind

 Due to poor financial management (capex funded by short term debt and operating cash flow), a firm finds itself in a liquidity bind. There is no cash nor further room on the short-term line of credit to pay over-due suppliers who are threatening legal action. Profitability is very good and leverage (vs. peers) is quite modest. Despite the mistake, the bank has confidence in the operational skills of management and likes the industry's market prospects. A sensible solution to the problem is: * Sell assets to raise cash to pay ST creditors Negotiate special terms from suppliers seeking payment deferrals Re-finance fix assets with a term loan using proceeds to boost liquidity Improve A/R collections to generate more cash