Denied Ameacable settlement by creditor

My daughter and her husband venture into bicycle part business last year.Unfortunately majority of their debtors ran away and did not pay them so they have close shop since they could no longer pay off their debtors.
yesterday we went to Lloyds lending to settle their loan ameacably,we will just pay the loan for them. Since January this year,they closed shop and are just being supported by us(parents) with their daily needs.The really are broke.
They borrowed 30k to Lloyds last June 2016 and was asked to issue 12 checks for weekly payments.They had those checks bounced from the second week and now threatening us to file criminal estafa case.The amount now roused to almost 120,000 just a matter of 1 year since it was borrowed.
What can we do in this situation? We asked them to just let us pay the principal amount of 30k in full, but they refused and their collection manager said they want our children in jail.
Today they sent us a letter an investigation data form and was told they will file the case this week in makati where there head office is.
Please advice what to do..

Thanks a lot.. Cornerstone Imus, Cavite.