Energy Conversion Devices, Inc. (fka ENERQ)

[Rooster6]

Look, I never once denied your DD. I think you are misunderstanding how a BK works though. This doesnt all happen overnight. It is a lengthy process, and shareholders are given advance notice if the company is attempting to reorganize their buisness, to either continue their business or to sell it. Everything they do under chapter 11 has to be approved by the courts first. Read this on chapter 11 bankruptcies.
http://www.sec.gov/investor/pubs/bankrupt.htm

Steps in Development of the Plan:

The debtor company develops a plan with committees.
Company prepares a disclosure statement and reorganization plan and files it with the court.
SEC reviews the disclosure statement to be sure it's complete.
Creditors (and sometimes the stockholders) vote on the plan.
Court confirms the plan, and
Company carries out the plan by distributing the securities or payments called for by the plan.
What is the Role of the U.S. Securities & Exchange Commission in Chapter 11 Bankruptcies?

Generally, the SEC's role is limited. The SEC will:

review the disclosure document to determine if the company is telling investors and creditors the important information they need to know; and
ensure that stockholders are represented by an official committee, if appropriate.
Although the SEC does not negotiate the economic terms of reorganization plans, we may take a position on important legal issues that will affect the rights of public investors in other bankruptcy cases as well. For example, the SEC may step in if we believe that the company's officers and directors are using the bankruptcy laws to shield themselves from lawsuits for securities fraud.