RE:If they can eliminate the banks?
"...cause with not bank backing debt becomes more risky and hence more expensive"
If a company is relying on a bank to pour more money after bad money to try and save what the bank already has invested in a company banks will demand more interest for the increase risk and/or dictate restrictive terms.
This is stacking more risk on top of capital already at risk.
This is what happened with oil producers during the last downturn. However, banks are more willing with a cyclical commodity like oil as there is certainty of a reversal and that has proved correct. With oil prices rising those debts are being repaid.