I think your right. Not sure if toxic debt would be the right term for what they have. (semantics I suppose ) Toxic debt has the potential to destroy the company.

Whatever debt deal they made, the lender sees the potential of the company to be wildly profitable and excel instead of just another pinky to try to short out of existence.

The lender also seems to be willing to wait for the pay off. That kind of demonstrates a lot of faith in the companies business plan. The lender might even had had something to do with setting up the current strategy....who knows.....