Europe's attack of the zombie companies

this article is based on poor problem definition. What we have is a "debt crisis", "global financial crisis" etc. its a financial problem as much as a 'real economy' one (Europe's attack of the zombie companies, Janauary 9).
In many cases, the company's problem is over-gearing (i.e. capital structure). With lower gearing it could wear 2 years of losses while it restructures, but its overgeared so it is stuck with maximising cashflow to pay to the bank.
Surely then if the problem is capital structure, the solution is capital structure, not 'creative destruction' of the company. A partial debt write-off solves the real problem and let the company evolve, killing the company destroys real value.

In regards to Jason's comment recommending debt restructuring, this raises the issue of Moral Hazard. Creative destruction may be painful for the badly run companies but hey, life is tough. Harden up First Worlders (Europe's attack of the zombie companies, January 9).

Funny how banks are "too big to fail" but no one else is (Europe's attack of the zombie companies, January 9).
If capitalism worked as advertised then the banks would fail and be replaced by more efficient operators.
So since we're not capitalist anymore what are we called now?
Oh right a banking dictatorship.

So the hedge funds poured huge amounts into Europe with the expectation of "stealing" distressed assets at bargain prices (Europe's attack of the zombie companies, January 9).
The european banks did not sell but kept the assets on their books awaiting a recovery, which is still to happen.
Are we now to feel sorry for these vulture hedge funds??
Hell no!!
Now I understand why these banks are only trickle feeding some distressed asset sales....and I have a greater respect for these bankers.