I don't know the specifics of that case or the terms of the sale, but generally, liquidation of assets goes to the estate (this is where the asset becomes "preliquidated" for lack of a better term), which is responsible for paying back creditors according to the court-approved plan.
You'll want to find out how much of the $37MM in assets (which would include inventory) are being sold for $9MM... if it's substantially all of the assets, they're obviously not concerned with paying shareholders. In that case, run.
If it's something less, like $12MM or $15MM in value being sold for $9MM, then you'll want to watch to see if assets will still outweigh liabilities before making a decision on its stock. If assets still outweigh liabilities, look for the terms in the plan to decide if the shares will continue on or be cancelled (I would also find out if this is a liquidation or a reorganization.)
It really comes down to how much of a discount the current bidder is getting, and how the plan gives the company the tools needed to repay the liabilities - for example, will all assets have to be sold or will there be a repayment schedule allowing the company to continue earning revenue? As it stands with those numbers, the company should survive and shareholders will likely remain owners... but there's not enough information at hand for me to give specific advice.
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