Since you don't understand the point, I will slow down for you....

Since you don't understand the point, I will slow down for you.

The book needs an equity component in order to survive. Banks have their own capital, as mandated through laws and standards. They are not 100% debt funded.
According to their balance sheet Z1P's debt is larger than the loan book. i.e, if they liquidated the book, there would be less money than they owe the bank. This company is almost insolvent.

I don't think that is necessarily a bad thing but I am not the risk-averse bank who is owed 100's of millions of dollars and expects to see it back. This bank probably will force them to raise capital in the near future.