Unfortunately it's not as cut and dry as that. Bankruptcy does not necessarily mean liquidation, it depends on the type of bankruptcy filed for. Chapter 7 is liquidation, but there are other options like Chapter 11 which is a reorganization of debt essentially. Some are defined term, some are final..
A lot of businesses go into the debt reorg type, and come out the other end able to continue operations, while primarily the shareholders are the ones that suffer. This is the type that concerns me now - the default when the company supposedly has cash to cover it is one of the biggest indicators. Many people here just don't seem to understand how serious a default is, and the ramifications that ensue for a long long time following.
Your point regarding the 'communicate less yet do more' policy not being effective is certainly a valid one. Were things running smoothly, sure, it can be an effective policy, but after an unexpected default? That is definitely not the time to suddenly clam up and leave shareholders in the dark.. it does not bode well.
I am watching the pps as close as I am able, and you can bet a lot of others are too.. another panic sell could be triggered so easily right now, I'm amazed the bottom-feeding scum mm's aren't trying to trigger another dump right now.. perhaps they are waiting on word from management as well, or word on what comes out from the conference today/tomorrow (strategic financing one)..
Sadly, Chapter 11 is a fairly common business strategy, and it is always the shareholders who get screwed when that happens.
