Ann: Lake Resources Announces Executive and Board Actions, page-64

It's just the way business works. Say you have a company that makes widgets. It makes good widgets, but there's a downturn in the widget market and the company goes broke. Now they should stop trading because they are insolvent, but instead they invoke Chapter 11 and attempt to trade out of the situation rather than fire sale all the assets. Well the losers are the shareholders, but they are shareholders in a bankrupt company their shares are worthless. The people who gain ownership are the creditors who opt for the company to trade its way out of insolvency rather than the fire sale option. If the company does exit Chapter 11 everyone wins, the shares that were worthless are now worth something, the creditors recoup what were worthless loans and the general economy is better off because a key widget maker is still pumping out those widgets that other companies need. Jesus the loss of your widget company could have brought down the whole widget and widget associated industry.
PS in the current phase of Capitalism that we are living under management look after themselves and quite handsomely at that.