I remember that. There was a huge stink about that as it was going on. As I vaguely recall (I may be mis-remembering this), there was even a point where the warrants were traded W/I while the bankrupted common was still trading and a number of parties were trying to arb it because the old common was so ridiculously priced.
Unfortunately, most firms wouldn't let you play.
"The penny stock investor may be the most dangerous creature in the investment world, at least to himself.[...]His hypocrisy becomes most apparent when he then blames his losses on the greed of others." Robert C. Dugan, Director - JRM Capital