What happens when Oracle can't pay the interest on their loans?
Their competitors eat them. I would not be surprised to see Oracle's cloud business get absorbed by IBM or Microsoft. Maybe Amazon. The extra DC capacity is valuable to a couple companies right now.
The lenders will then just report missed payments as revenue on their books.
They will ask tax payers for a bailout?
Whatever happens, I can assure you that the Ellisons will remain multi-billionaires and the American taxpayer will manage to end up poorer, courtesy of their friend in the White House.
They'll use their purchases of TikTok and Paramount to campaign for a bailout.