In large measure, this reflects changes in technology and mortgage markets that have dramatically transformed accumulated home equity from a very illiquid asset into one that is now an integral part of households’ ongoing balance-sheet management and spending decisions.
It may be extremely difficult to operate the enterprise profitably without paring down debt levels and hence, a first step could possibly be to bring down the debt to a manageable level. This might involve writing down a part of the debt by the lenders and/or converting them into equity and bring in a new promoter to run the enterprise.