HappySqurriel on 30 December 2012
The real problem Sony faces is that their net liabilities are at $140 Billion, their net icome is at -$5 Billion, and their debt to equity ratio is at 83% ...
At the current rate, in the not too distant future (2 to 3 years) Sony will have a book value of $0. There best option is to file for chapter 11, convince debt holders to take a haircut (probably resulting in liabilities being reduced by 50% to 75%) by diluting shareholder equity, and to restructure the company to return to profitability.
