Is too much debt being used by MG International (EPA:ALMGI)?

Why Does Debt Bring Risk?

Debt and other obligations are expensive for a company if it is unable to fulfill those commitments easily either with free cash flow or by raising capital at an attractive price. The lenders will take control of the business if things get really bad. A more popular (but still painful) case, however, is that it must raise new capital at a low price, diluting investors forever. In replacing dilution, however,....