Answer:
This is not the definitive answer, but I would say more information is needed. Why was the loan classified, and have the conditions that caused that been mitigated? If not, the loan is not ready to be upgraded. Say some unencumbered assets were sold to make payments, but cash flow is what is preventing timely payments otherwise. And with the sale of some assets cash flow is actually expected to worsen as manufacturing will now decline. In this hypothetical the problem isn't resolved, but could be worsened.
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