A second attempt by private equity group Next Capital to acquire Silver Chef, or its assets, has failed and the struggling equipment finance company is now pinning its hopes for survival on a recapitalisation plan being put forward by a major shareholder Blue Stamp Co.Silver Chef is in breach of its debt covenants and has waivers in relation to both its syndicated debt facility and its securitisation warehouse facility, allowing it to raise capital.It has been operating with the waivers since July last year and has been looking for a A$45 million capital injection.Early in July it looked like its problems were over when it announced that it had entered into a scheme implementation agreement with Next Capital.But earlier this month fund manager Blue Stamp, which owns 19.99 per cent of Silver Chef, blocked the deal and came up with its own recapitalisation proposal.Next Capital came back with a second proposal but yesterday that was knocked on the head.In a statement to the ASX yesterday, Silver Chef said it had "informed its financiers that they should focus on the BSC proposal and cease discussions with Next Capital. The BSC proposal remains subject to due diligence, which BSC is progressing with Silver Chef." The company's problems go back to its decisions, early last year, to get out of its GoGetta business, which was not making an acceptable return and was also in trouble with the regulator. Write-downs of expected returns from GoGetta and an increase in provisions tipped the company into loss in 2017/18 and the six months to December.Those write-downs also caused the company to breach its financial covenants.Meanwhile the company's business operations are deteriorating. Conditions imposed with the waivers mean that it is only able to originate from available cashflow. This has "significantly reduced the near-term financial outlook for the company and reduced the effectiveness of the proposed capital management plan."