If I were a SRZ lender or partner, I will buy a lot of SRZ shares on open market and then work with SRZ by:
- extending the loan due date by 2-3 yrs - lowering the interest rate - converting the past due interest etc. to SRZ preferred shares or warrants - asking managenent to reduce cost to turn company to profitability within 2 quarters - setting a timeline for SRZ to sell assets to lower debt amount.
SRZ stock will go to 10+ and everyone will be a winner.
Why is it iilegal? If it is then don't do it. But how is it illegal. You are a shareholder and you want to give the management a fair chance to succeed in this tough economy. You are taking the risk like all others. May be you extend the terms, get management sign-off on turnaround plan and then buy the stock.