This really might be the best thing for the company. Under Chapter 11 the company can negotiate financing with favorable terms, because the new lender will take first priority on earnings. This was one of the things holding up prior financing deals, since the first tier lenders refused to take a backseat (I don't really blame them).
The company may also receive protection from the lawsuits against them, because of an automatic stay.
Also, we now have a company that specializes in restructuring failed/failing businesses at the helm. I don't know about the Watley Group's credentials, but hasn't everyone been begging to have actual businessmen in the captain's chair?
