Capital and Debt restructuring
As part of the entity running the business, financial problems cannot be separated especially with the increasing competition in the business world.
Debt/Equity restructuring is one of the alternatives that can be performed to exit a problematic financial performance with expectation that the entity can improve its operations.
The entity needs to undertake Debt/Equity restructuring because of liquidity and losses that affect the going concern of the entity. The liquidity problems is because the entity suffers a loss and inefficiency in management allocation of expenses. Meanwhile, loss is due to the poor ability to manage the market competition. Management is incapable to manage the expenses so that operating expenses are inefficient and the production manager is incapable to manage the production process, as such, the product quality is low.