Take a good look at delphi. An upside down balance sheet, loosing 700 mil a year and OOPPPS,a bidding war coming for the company at about 5 bucks a share.Go short Fedders. Now those guys are getting back zilch when they file.
Delphi is a disaster right now. They will be lucky if the court grants them more time to reorg. This company and Tweeter are perfect examples though of companies that failed, but where you can make money on shorting the stock. Neither of these are long term plays.