Replies to post #191513 on Xechem International Inc. (fka XKEM)

[E440]

http://www.sec.gov/investor/pubs/bankrupt.htm

This may answer your question.

Federal bankruptcy laws govern how companies go out of business or recover from crippling debt. A bankrupt company, the "debtor," might use Chapter 11 of the Bankruptcy Code to "reorganize" its business and try to become profitable again. Management continues to run the day-to-day business operations but all significant business decisions must be approved by a bankruptcy court.

Under Chapter 7, the company stops all operations and goes completely out of business. A trustee is appointed to "liquidate" (sell) the company's assets and the money is used to pay off the debt, which may include debts to creditors and investors.

I would suspect, that due to the debt ratio, the company will file chapter 7. Swift ends up with 5hmf and the shaft has been fully delivered.