While you may say the company owes the debt, let the debt holders collect anything from a worthless shell. And let the company try to succeed when it's so far in distress its Common falls to No Bid immediately.
Work out agreements deal with distress, and require everyone to share in the loss.
The keys:
1. All parties need to work together to develop a comprehensive approach
2. All parties need to recognize that despite 4 R/S's (and one more required) all alternative solutions have been tried and failed
Just like the paradox of thrift, when every individual does only what's good for themselves the entire system fails. Here, when everyone takes a portion of the loss, there's an opportunity for recovery. Its not a guarantee, but the outcome is much better than the present reality.
The paradox of iHub: buy high, sell low
