Most of the companies are functioning but indebted; the ones applying to C11 are sinking, having no cash, more debt that assets (so no guarantees for more debt)

Most of the companies are functioning but indebted; the ones applying to C11 are sinking, having no cash, more debt that assets (so no guarantees for more debt) and a negative trend. That is not "functional", it's "sinking" or "dying".