It wasn't doing all that well before the keel fell off. Clearly that exacerbated their problems, but they suffered from low margins and poor overall performance. As to paying due bills, we don't know if he assumed any of the past debt or not. In most cases one purchases the assets but not the business and not the debt. He is bringing in some with previous industry experience. There is definitely hope for a turnaround but there are some issues to address to make that happen.