Explain write-off? How can a co. like lehman stay in business?

Question

forget about government help. how does a co. have so much debt and no way to pay it back?

Answer 1

It is not a write-off, it is a write-down.  What they are doing is adjusting down the value of their assets, not increasing debt.    

They do have about $613 billion in debt and $639 billion in assets.  This is not a good ratio, but it does not mean they should be out of business.  Over half of their debt is long-term.  As long as they are able to make enough money to pay on their debt they will have not problem staying in business.