To answer my own question, perhaps the answer lies in the answer to another question: Who would have a controlling interest in Xechem after the reorganizatioin plan is approved? If stock in the reorganized corp. is awarded to creditors in proportion to the respective debt owed to those creditors, I doubt that the hedge fund would have a controlling interest in the reorganized corporation. (Consider the respective amounts of the debts owed to NEXIM, UPS, Blech, holders of outstanding judgments, etc).
If the hedge does not have a controlling interest in the reorganized corporation, what are the chances that Swift remains "in charge." (About as good as my chances of quarterbacking the Chicago Bears to the Superbowl this season.)
Chapter 11 could be dicey for the hedgies.
