You're right, but IMO they're doing it to shareholders rather than creditors and I don't know if that is illegal. Run the company down until there's no money left, have a white knight step in with a loan which allows conversion to such equity that it overwhelms existing holders, then in this case have another step in with a larger plan which further dilutes the existing holders out of existence. The current individual shareholders who are outside the tent will have nothing to recover. The Board has abrogated its responsibilities, sold shareholders out and should be held responsible.
That CR early this year was very strange when it could be seen that the writing was on the wall and the directors each purchased shares at 15 cents. I thought at the time that they would be furious at having been coralled into buying, but perhaps there was a plan to keep them onside. If I was a shareholder in this I would be furious but this Board gets a free ride and a pat on the back from the people it has ground into the dust.
