Treasury to acquire 30% of company for $700M. Company is worth $120M

The full headline is

"In unusual deal, U.S. Treasury to acquire 30 percent of trucking company in exchange for $700 million loan"

I wonder if a better title would be

"Treasury to acquire 30% of 120M company in exchange for 700M loan"

True, but if the company can't repay the loan, its creditors will have to be repaid from the bankrupt company's assets, so one possible outcome would be that Treasury ends up paying $700M for the liquidated assets of a company worth much less than that.

On the other hand, if the company survives and the stock price rises to above where Treasury bought it at, Treasury could make a profit when it sells its shares.