Spatialight Inc. (fka SPLT)

[downsideup]

Red flags ?

http://www.northbaybiz.com/Columnists/Only_in_Marin/SpatiaLight_Goes_Dark.php

The company is in receivership... a chapter 7 filing which will kill the company and leave nothing for shareholders, even if there were going to be anything left, which it seems there will not be. They had $19 million in debt... and, as far as I can tell, the only asset they have left is the potential value in suing former officers. Anything else of value was stripped out a long time ago.

Why the receiver hasn't acted to shut down the trading in the stock is a bit of a mystery. I'd guess it "might" mean that they intend to see the remaining legal problems resolved and then resolve the remaining problems in BK and then may convert the Ch 7 filing to a chapter 11 at the last possible moment, in order to allow the receiver to sell off the bankruptcy rehabilitated shell to make a profit... at which point any remaining holders would be likely again be diluted into oblivion. I understand why those holding these dead shares in an account might continue to hold onto them... but why the stock continues to trade ? ???