The article discusses how companies face problems when managers prioritize their own interests over maximizing profits for shareholders and meeting obligations to creditors. It explores different solutions like diversification, shareholder voting rights, and debt contracts. The researchers suggest that using dequity contracts, like convertible debt and puttable stock, can be a better way to align the interests of managers, shareholders, and creditors. These contracts can help address the issue of managers seeking personal benefits instead of focusing on maximizing profits for the company.