It's not inevitable at the time when the debt is raised that it will be unserviceable. The creditors will have a view on whether the firm can service the debt,

It's not inevitable at the time when the debt is raised that it will be unserviceable. The creditors will have a view on whether the firm can service the debt, but typically that doesn't incorporate a complete cessation of business due to a global pandemic. Whether in the larger picture the creditors are getting paid enough to take on the risk is an interesting question. My guess is that they don't take enough account of a scenario where many bankruptcies happen at once.