"Losers always whine about liquidity..."

Lack of liquidity is the constant refrain of the insolvent.

Think about it this way: there is a whole class of entrepreneurs that lend to distressed companies, as long as there is collateral. So, if you can't borrow money in the market, what's the matter? Why don't these entrepreneurs think you are solvent?

Actually, stupid lenders will usually lend well past the point where the company is insolvent.

In restructuring, I never saw a case of "illiquidity" that wasn't just insolvency/business failure.