We have taken unsecured loans (cash) from frineds and relatives to finance our projects, now since company suffered huge losses in terms of profit in implementing those projects. We are unable pay the money to these poeple who helped us, since non of us have the property worth the amount taken to pay them back. This is private limited software firm operating since 1998.
Is there any provision to convert these loans to shares or equity in the company?
Suggest any any alternative to resolve the issue.
CAclubindia
