Which of the following actions might a company take during a workout?

In the context of a workout, which is a process involving the restructuring of a company's debt obligations often outside of formal bankruptcy, negotiating payment terms with creditors is a critical action that can help alleviate financial stress. This allows a company to potentially extend the payment period, reduce interest rates, or even lower the principal amount owed. Through negotiation, the company seeks to reach mutually acceptable terms that enable it to maintain operations while addressing debts, ultimately improving cash flow and stability.

Engaging in negotiations can prevent the need for more drastic measures that could harm the company's long-term prospects, such as selling off profitable segments or acquiring competitors, which may lead to further complications or deterioration of financial health. Therefore, actively seeking to renegotiate payment terms is a primary strategy employed during a workout situation to manage liabilities effectively and create a path toward recovery.