Writing down of equity share capital by 60% as per BIFR directions

"Writing down of equity share capital by 60% as per BIFR directions " >>> The net effect of reduction is that a shareholder holding 100 equity shares before reduction will get 40 equity shares after reduction and consolidation. How this help company to reduce debt or revive?

Speaking from my theoretical knowledge; a company utilises reduction in share capital for writing off of fictitious assets.
Fully newbie here. Plz guide where I’m wrong.:+1: