Leveraged recapitalization (LR) is a corporate financial decision usually involving a substitution of a debt for equity by raising debt. Using that cash, the management buys the company’s stock as or provides cash to the shareholders as a means of refinancing or restructuring. There are some downside effects. The debt pressure could lead the management to the short-term cash generation. The restructuring process often incurs a serious conflict of interest among the corporate stakeholders - shareholders, employees, and creditors. This case demonstrates the details of the leveraged recapitalization process and the various conflicts of interest among the stakeholders. The readers are expected to evaluate the impact of the repurchasing of treasury stock, capital reduction, and asset sales from the various perspectives. This study attempts to demonstrate the strategic implication of the corporate finance decisions. The ethical judgment on the case requires the higher level discussions about the ‘goal of the firm’, and the ‘managerial duty’ far beyond the business textbook chapters.