It depends on what you call negotiating. You need to remember that most of the tricks have been tried before and there have been lawsuits determining the rules. One of the tested ones is preferential treatment of a particular lender. If ALD and the banks decided to grant security to the private lenders and then file a chapter 11 the courts would rule that the banks had received preferential treatment and the public debt had been disadvantaged. That would be a way for the banks to jump ahead of the public debt. If the preference occured 60 or 90 days prior to the bk filing it could be unwound (can't remember if it 60 or 90). In some situations, that probably don't apply here, it could be up to a year. One key thing that is keeping the banks or private lenders at bay could be the fact that by pushing the issue and forcing the BK issue they don't gain any ground against the public debt. Can anything be negotiated? Yes but you need to let all the players be in the negotiation if your about to file BK. Example. Often before companies file ch 11 they may choose to pay off one lender or grant them extra collateral in order to gain cooperation during the BK proceedings. Sometimes the preferential treatment is on a loan that the business owners have personally guaranteed. The courts recognize this and will unwind the last minute dealings and start over, looking at what is fair to all parties.
I'm not an attorney but with 20 years of commercial lending I've been through more than a few small to mid size bankruptcies and have seen the efforts to bend the rules. I've also followed many large public bankruptcies.
Given a choice most lenders would prefer to keep the courts out of their dealings including the BK courts. I suspect they are negotiating security for the bank /private loans and agreeing to extend some credit. That leaves the company able to ride the recession out and we all get paid. There may be an equity piece and some delution but that I'm less sure about and as an AFC holder not concerned.
Remember when a company is in default on their loans and as survival becomes less certain the fiduciary responsibility of the board shifts from the common holders to include the lenders as well. That would include all lenders. It is grey to me as to when the responsibility shifts but it happens. I'm sure that discussion has occured with the companies legal counsel.
This company will survive and I see no reason for a BK . Adequate assets exist. I've been wrong before.