The report I saw suggests they are already unable to pay debts to contractors, and have been trading on empty for some time, issuing IOUs instead of payments. It's now become obvious and untennable.
The knock-on effect is the real damage because all the people they don't pay then can't themselves pay for things, and so more companies will go bust. It will be large companies and small.
The idea that the US or China can just print more money shows how utterly clueless these people are. You can't. History has shown over and over that you can't inflate money like this without consequence.
The reason they do it is it steals from savers and gives to debtors, by devaluing their debt. And there are no bigger debtors than the government, which is why Fiat money always eventually implodes and goes to zero.