Could an in-between solution be possible ? (I haven't evaluated the implications as to NOLs, etc., to be honest): Berg remains as a creditor and large shareholder of a healthier company, controlled by a majority stake belonging to a big name (say JCI).
I can see many reasons why it could be very difficult to realize, but also good reasons why it might represent a win-win situation for both parties (although the devil would be in drafting the details).
Small shareholders would be back in the black, by miracle.