This is worth focusing on because the same phenomenon is happening to a large extent in the farming sector. Farmers are unusual because statistically they constitute both households that consume and businesses that produce, thus complicating analysis of balance sheets. But when we look at farms as a business we see some trends that look rather like urban households. Source: Quotable Value Ltd.
If an extreme tail event occurs and the equity of the firm is wiped out, successful resolution without taxpayer assistance would be most effectively accomplished if a firm had sufficient long-term, unsecured debt to absorb additional losses and to recapitalize the business transferred to the bridge operating company.