Excellent post - very clear to anyone who wishes to understand. I am going to remember this post to your link. I have read many people who have posted thoughts along the same line, "Someone with integrity can just clean the new company up."
However, if anyone would just read filings of companies, they would understand that what happened with company X before they became company Y still affects new company Z. Because, I am probably mistating it this way - but, the SEC views them all (X Y & Z) as the same company.
Also, BECAUSE OF THAT PROCESS, MOST COMPANIES WITH INTEGRITY WILL NOT EVEN TOUCH A 'DIRTY' SHELL. So, often, dirty CEO's and dirty companies attract other dirty CEO's and dirty companies.
All The Best
This is you, if you don't do your DD for yourself - so don't just listen to me!
Aaahhh, yes...the old penny ploy