....what the hell am I reading here, that's not how D/E ratio...

....what the hell am I reading here, that's not how D/E ratio works at all. High D/E ratio will affect a company's ability to raise funds, it absolutely does not affect its current debt obligations. Now if SGH needs further fund raising to sustain its operation, this high D/E ratio is a huge hindrance on its ability to do so; if that's the case, the company is likely to face liquidity issues and go into VA. THAT is when debt write off happens, and it's at the BANK's books, not in SGH's books. 800-1000% D/E ratio doesn't mean jack to SGH's current debt obligations.