Although that is true, it isn't always the case. A recent example is SSWC, owned by retired patent attorney Kenneth P. Glynn who negotiated, eliminated and/or converted debt to restricted shares (that he is holding for at least one year) ALL before recently announcing his business plans for his new company.
I know it is unusual for CEO's to step in, buy a shell, clean it up, and get the books straight especially without tapping shareholders & instigating dilution,... but it happens. In the case of SSWC, Ken Glynn has rolled patents into the company, just launched a new website, is selling products already (in less than 3weeks after announcing his intentions) and is about to license many of his over 175patents to other companies.
Now of course that is a current example of how it wouldn't be just all bad for shareholders here. We'll have to wait & see. In the meantime, I am researching this company too...trying to figure out how the hell it dropped so far in such a time where metals have been kinda hot!!!
